Saudi proptech Rize has raised $2.9 million in a seed round, from Seedra Ventures, Hala Ventures, JOA Capital, RZM Investments, Bonat Investments, Nama Ventures, and some angel investors, it announced on Wednesday.
Founded in 2021 by Ibrahim Balilah and Mohammed AlFraihi, Riyadh-headquartered Rize enables individuals and businesses in Saudi to rent residential and commercial properties in Saudi and pay their rent in monthly installments.
In Saudi Arabia, rental payments are usually charged for either a six-month or one-year period, requiring tenants to pay for up to one year of rent at a time.
Rize is trying to fix this with its ‘Sharia-compliant’ solution by working with the landlords and offering flexible monthly payments to tenants.
The startup claims to be licensed by Saudi Arabia’s Real Estate General Authority, the local credit bureau, and Ejar, a government digital platform aimed at regulating the real estate sector in the Kingdom and ensuring the protection of the rights of both landlords and tenants.
Rize lists properties that can be rented but also allows users to apply for rentals outside its platform.
The startup examines profile of an individual or a business to determine their rental eligibility and limits. For personal rentals, Rize reviews personal credit, and in case of companies, it assesses a firm’s financial health.
Ibrahim Blileh, Co-Founder and CEO of Rize, said, “The confidence shown by investors in this round reflects their belief in our vision to improve the rental industry in the Kingdom. We aspire to make monthly payments the standard in residential and commercial leases, and with this investment and the remarkable growth of the Ejar platform, we will be able to expand further across the Kingdom.”
Walid AlBarrak, a representative from Seedra Ventures, said, “The strong government support for digital transformation in the real estate sector, including initiatives like the Ejar platform, provides an ideal environment for growth and innovation. Our repeated investments in Rize reflect our strong belief in their ability to stimulate innovation in the market and improve the tenant experience.”
Ajras, another proptech that offers a similar solution had raised $28 million in debt and equity towards the end of 2023.
