Saudi-based Proptech Mabaat secures $2.4M in Seed Funding
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Saudi-based Mabaat, an innovative tech operator platform focused on disrupting the short-term rental market, has successfully secured $2.4M in a recent fundraise. The Seed round was led by Derayah Ventures with participation from SEEDRA Ventures.
Founded in October 2019 by Talal Al Sorayai, Mabaat’s unique digital platform onboards properties and manages them on behalf of their owners, with offerings ranging from mid to high-end private homes and compounds distributed across key markets in the Kingdom. Based on our free H1 2021 Saudi Venture Capital Report, brought to you in collaboration with SVC, both Derayah and SEEDRA Ventures ranked amongst the top investors in Saudi Arabia in the first half of the year; with the first closing 5+ investments and the latter closing between 2 and 4.
Since its launch, the Saudi-based Proptech grew to become a trusted player in the short-term rental market. Mabaat provides a unique level of transparency and efficiency to property partners and guests through real-time information, streamlining vital operations like booking and payment, sterilization and cleaning schedules, property maintenance updates, and much more. Commenting on the funding round, Talal Al Sorayai, Founder and CEO of Mabaat said “We are extremely proud of this investment that supports our vision in disrupting the alternative accommodation market. Mabaat’s innovative platform is unique as it offers property partners higher occupancy levels at attractive rates. With this direct support that we have received from the Saudi government and our partnership with the Ministry of Investment and Tourism, Mabaat is now well-positioned to disrupt the alternate accommodations market throughout the Kingdom.”
Funding in Saudi Arabia witnessed a record-breaking growth in the first half of the year, however, what’s most interesting is the nature and dynamic of VC funding in KSA. Over 66% of investors in Saudi-based startups were also Saudi-based, showing healthy self-sufficiency. Yet, what’s even more remarkable is that Saudi investors seem to be as interested in big rounds as they are in early-stage ones. Even though slightly less than in H1 2020, Funding rounds sized $3M or less accounted for 73% of all deals in H1 2021.
The Saudi-based Proptech plans on utilizing its newly acquired funds to boost its outreach efforts, highlighting the brand's VP’s and targeting regional travelers seeking swift solutions. Mabaat also plans on further increasing its stack capabilities by developing its technologies and recruiting new talent. Faris Al-Rashed, Head of Derayah Ventures, concluded “Investment in the tourism sector is one of the pillars of the Saudi Vision 2030 that targets a contribution from this sector close to 11.5% of Saudi GDP by 2029. In order to realize this, one of the new models considered is a short-term rental that capitalizes on existing and hardly-utilized capacities, therefore, prepare them for medium to short-term stays.”
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