In talks to expand into KSA, Saudi-backed real estate startup!
The company allows investors to purchase property shares and to generate regular returns as quarterly dividends.
RIYADH: Stake is in talks to expand in Saudi Arabia, Dubai-based financial technology (fintech) and an investment platform with the support of Saudi investors. qatar dale
Launched in December 2020 to disrupt the real estate investment market in the Dubai International Financial Centre, Stake is based at FinTech Hive. The company was co-founded by Rami Tabbara, former senior sales chairman of developer DAMAC, and Manar Mahmassani, former managing director of the Falcon Group and deputy chairman of Deutsche Bank.
The company offers investors the opportunity to purchase shares in a property and generate regular returns as quarterly dividends. The investor entry level is 2,000 dirham ($544), up to a third of the value of a particular property.
Stake announced Tuesday that the Combined Growth Real Estate Company, led by Amer Hammour, founder and President of Madison Marquette, a US-based real estate investment management firm, raised $4 million in a seed finance round.
The Dubai private family office Vivium Capital, the Zurich-based venture capital company Verve Ventures, the UK based Chalgrove Properties Limited, the Riyadh-based Lama Holding company, and Mishaal Alireza, a Saudi angel investor, were also involved.
"I am very proud to have supported Stake since its launch," Alireza told Arab News. Their proposal brings a positive change to the real estate market, driving it to the digital era and creating a comprehensive real estate proposal for investors in the region and abroad. I look forward to seeing them play an important role across Saudi Arabia and the Gulf in the real estate and fintech market." Stake currently operates in Dubai, but the new funding is planned to be used to expand into Saudi Arabia, said Arab News co-founder Tabbara.
"We're already talking about how we can partner with Saudi real estate developers to bring Stake into the Kingdom. We believe that with all the positive developments at record speed, this is the best time to launch a product like Stake in Saudi Arabia," he says.
"We have the perfect ingredients for successful market entry. The population has a 92% smartphone penetration rate and a connection to real estate investment, and the Government's Vision 2030 supports the increased supply and possession of property," he added.
Stake will use the funds to scale and strengthen its platform through the introduction of new products and functions, sales and marketing investments and the expansion of its current 15 employees' workforce.
Tabbara said last December about Saudi expansion: "Saudi Arabia is a huge market for us. We believe there is enormous potential."
Since its launch five months ago, Stake has attracted more than 4,000 registered users from 54 countries and is experiencing an increased average sales of 30% month-on-month. In addition to expanding into Saudi Arabia, Stake is also entering the UK market.