the_saudi_boom_logo_multicolor
Home » Companies » Rize, Saudi PropTech Startup Raises .9 Million in Seed Funding Round
Rize, Saudi PropTech Startup Raises $2.9 Million in Seed Funding Round

Rize, a Saudi PropTech (Property Technology) startup, has successfully raised $2.9 million in a seed funding round, with support from SEEDRA Ventures and a group of angel investors.

The company was launched in 2021 and aims to make the rental market more affordable in Saudi Arabia by offering a rent now, pay later service.

Rize allows tenants to manage their rental payments in easy monthly installments and aims to make monthly payments standard in residential and commercial leases across Saudi Arabia.

The No.1 Business Site in Saudi Arabia

Get The Latest Developments in The Growth of Saudi Arabia Straight to Your Inbox and Stay Ahead of The Curve

Seed Funding Round: A Vote of Confidence for Rize

Image Credit Rize

The recent seed funding round saw Rize raise $2.9 million, affirming investors’ confidence in the company’s vision and business model. 

This round was marked by participation from prominent venture capital firms such as SEEDRA Ventures, Hala Ventures, JOA Capital, RZM Investments, Bonat Investments, and Nama Ventures, as well as a cohort of angel investors.

Rize also disclosed that it has also secured additional funding through debt financing.

The People Behind Rize

Image Credit Rize

The brainchild of Ibrahim Balilah and Mohammed AlFraihi, Rize was established in 2021 with a pioneering vision to transform the rental landscape in Saudi Arabia. The founders identified a significant gap in the market, as tenants often struggled with large upfront payments. 

Rize’s Innovative Business Model

Image Credit Rize

The “Rent Now, Pay Later” product is at the heart of Rize’s business model. This innovative approach to rental payments offers flexibility for tenants and landlords alike. Although monthly rental payments are standard in Europe and the USA, many landlords in Saudi Arabia require upfront 6 or 12 month rental payments to reduce risks.

This affordability problem for tenants has created an opportunity for companies such as Rize to come in and disrupt the market. With their business model, tenants can easily manage their monthly rental payments, eliminating the stress of large upfront payments. This model ensures a steady income flow for landlords and reduces the likelihood of default.

The Ejar platform

Image Credit Rize

The Ejar platform was created by the Real Estate General Authority of Saudi Arabia with the goal of simplifying the procedure of renting a new property. It offers a secure and user-friendly method for electronically finalizing lease agreements using a standard contract. 

According to the authority’s announcement in January, all residential rent payments in Saudi Arabia must now be exclusively processed through this platform.

Rize’s Use of Funds

Image Credit Rize

Rize intends to utilize the newly acquired investment to accelerate its expansion efforts across Saudi Arabia. The company aims to leverage the funding to broaden its reach and impact within the Saudi real estate sector, offering more tenants the opportunity to benefit from its flexible payment solutions. 

This financing round marks a significant milestone for Rize, underscoring the growing investor interest in protech solutions addressing key industry challenges.

Investor Confidence in Rize’s Vision

Image Credit Rize

Investors’ confidence in Rize is evident from their willingness to participate in the seed funding round. 

As Ibrahim Blileh, Co-Founder and CEO of Rize, expressed, “The confidence shown by investors in this round reflects their belief in our vision to improve the rental industry in the Kingdom.”

The Role of SEEDRA Ventures

Image Credit Seedra Ventures

SEEDRA Ventures, a key investor in the round, recognized the potential of Rize’s unique approach to the rental market. 

Walid AlBarrak, from SEEDRA Ventures’ investment team, stated, “Our repeated investments in Rize, culminating today in the third investment in the company, reflect our strong belief in their ability to stimulate innovation in the market and improve the tenant experience.”

Enhancing Technological Capabilities

Rize also plans to use the funding to advance its technological capabilities further. 

As Mohammed Alfraihi, Co-Founder and CTO of Rize, stated, “Our latest funding reaffirms our commitment to streamlining property interactions, making rental processes efficient and more tenant-friendly. We are enthusiastic about leveraging our technology-driven solutions to contribute to this transformative period.”

Rize’s Future Plans

Image Credit Rize

With the seed funding in place, Rize is set to expand its operations across Saudi Arabia. The company’s long-term goal is to make its flexible payment model the standard in residential and commercial leases throughout the Kingdom. 

With its innovative business model and strong investor backing, Rize is well-positioned to transform the rental landscape in the Kingdom and pave the way for a more affordable and accessible housing market.

Keep Reading: TAMARA Saudi Fintech Firm Backed By Goldman Sachs Hits $1 Billion Valuation

Become smarter in just 5 minutes

Get the latest developments on The Saudi Boom straight to your inbox and stay ahead of the curve for free