Ejari Raises $14.65M to Expand ‘Rent Now, Pay Later’ Service

Arabic

• Ejari secures $14.65 million in seed funding to enhance its technology and expand its “Rent Now, Pay Later” service, addressing the challenge of upfront annual rent payments in Saudi Arabia.
• The startup’s funding round, led by Partners for Growth and BECO Capital, includes a mix of equity and debt financing, bringing total capital raised to $15.65 million within a year.
• Ejari’s service is already available in 17 cities across eight regions in Saudi Arabia, with plans to increase market share and improve offerings for both tenants and landlords.

Saudi platform aims to enhance technology and broaden product offerings to make renting more accessible

Ejari, a Saudi Arabian startup dedicated to democratizing access to real estate, has successfully closed a $14.65 million (SAR 55 million) seed financing round. The round was led by Partners for Growth (PFG) and BECO Capital, with participation from anb seed, Alinma Bank (through its fintech arm Alinma Pay), Rua Growth Fund, Vision Ventures, and Aqar, Saudi Arabia’s leading property listing platform. Existing investor Salica Oryx Fund also participated, along with several angel investors.

This funding round is a mix of debt and equity, with the debt portion provided by California-based Partners for Growth. With this latest investment, Ejari has raised a total of $15.65 million (SAR 58.76 million) within less than a year.

Enhancing Technology and Expanding Offerings

Ejari plans to utilize the new capital to strengthen its technological infrastructure and expand its range of products and services. The company’s mission is to democratize access to the rental market and lower barriers for tenants across Saudi Arabia. Ejari aims to provide exceptional value to its clients by offering more flexible payment options and innovative solutions.

“This funding brings us closer to our goal of making the rental market more accessible and breaking down barriers for tenants,” the company stated. “We are deeply grateful for the trust our investors have placed in us and are excited about the future.”

Addressing Market Needs with “Rent Now, Pay Later”

Ejari’s flagship service, “Rent Now, Pay Later” (RNPL), tackles a significant challenge in the Saudi rental market, where an estimated over 70% of rent payments are made annually or semi-annually. This traditional payment structure can pose financial challenges for tenants who prefer more flexible payment schedules. The RNPL service allows renters to spread out payments, providing much-needed flexibility and reducing financial strain.

In less than a year since launching, Ejari has received over $30 million in demand for its RNPL service. The company currently operates in 17 cities across 8 regions in Saudi Arabia, highlighting the growing demand for flexible rental payment solutions.

Building on a Personal Mission

Ejari was founded by CEO Yazeed Al Shamsi and his childhood friends Fahad Albedah, Khalid Almunif, and Mohammed Alkhelewey. The idea for the company emerged from Yazeed’s personal experiences with the rigid rental system in Saudi Arabia and abroad, particularly the requirement of upfront annual rent payments.

“Faced with this persistent problem and the lack of viable solutions, we decided to take matters into our own hands,” Yazeed shared in an earlier interview with Rasmal. “We realized that this challenge was not unique to our experiences alone but rather a widespread issue affecting many individuals.”

The founders conducted extensive market research and iteratively developed the business model. Their mission-driven approach focuses on addressing the specific needs and challenges of the Saudi rental market by offering innovative, customer-centric solutions.

Strengthening Market Position

With the infusion of new capital, Ejari intends to increase its market share within the RNPL sector and enhance its product and service offerings. The company aims to solidify its position as the leading player in the “Rent Now, Pay Later” space in Saudi Arabia.

“This investment will enable us to expand our reach and improve our services, reinforcing our commitment to serving the needs of renters and landlords alike,” Ejari noted.

Investor Confidence in Real Estate Innovation

The participation of prominent investors underscores confidence in Ejari’s business model and the potential for innovative solutions to address market gaps within the real estate sector. Partners for Growth’s involvement, particularly in providing debt financing, reflects a strategic interest in supporting companies that offer practical solutions to real-world problems.

Alinma Bank’s investment through Alinma Pay, its fintech subsidiary, signifies the banking sector’s recognition of the importance of fintech collaborations in enhancing financial services related to real estate. The involvement of Aqar, a leading property listing platform, highlights the synergy between technology and real estate sectors in facilitating better solutions for tenants and property owners.

Future Outlook

Ejari’s vision extends beyond the RNPL service. The company aims to provide a seamless housing experience tailored to the specific needs of the Saudi market. This includes plans to assist customers at every step of their housing journey, from furnishing their homes to addressing maintenance needs.

“Our goal is to stand out in the market by delivering exceptional value and service,” Yazeed explained. “We’re driven by our commitment to addressing rental challenges in a way that prioritizes customer satisfaction.”

Conclusion

Ejari’s successful seed funding round marks a significant milestone in its mission to transform the rental market in Saudi Arabia. By enhancing technology and offering innovative financial solutions, the company is poised to make a substantial impact on how rental transactions are conducted, benefiting both tenants and landlords.

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