Saudi Arabia-based property rental startup Mabaat has raised $2.4 million in a seed funding round in order to expand its operations in the Kingdom.
Derayah Ventures, a venture capital firm based in Riyadh, led the investment round. Early-stage investment specialist Seedra Ventures was also part of the financing deal.
According to the company statement, the funds will be used to improve the company’s marketing approach, with a focus on regional travelers seeking short-term rental accommodations in Saudi Arabia. Mabaat also intends to improve its workforce and improve its technical infrastructure in order to satisfy rising demand.
Mr. Talal Al Sorayai, founder and CEO of Mabaat, has stated that the latest financing will help the company achieve its vision of “disrupting the alternative accommodation market” across the kingdom. “Mabaat’s innovative platform is unique as it offers property partners higher occupancy levels at attractive rates,” Mr. Al Sorayai added.
Similar to the AirBnB model, the Saudi startup provides a platform for property owners to offer short-term rental accommodation. The company manages mid-to-high-end private homes and compounds across the Kingdom.
Furthermore, Mabaat noted that its technology gives both property owners and guests more transparency and efficiency by providing real-time information on bookings, payments, sterilization, and property maintenance updates.
“Investment in the tourism sector is one of the pillars of the Saudi Vision 2030. It targets a contribution from this sector close to 11.5 percent of Saudi GDP by 2029. In order to realize this [goal], one of the new models considered is short-term rentals that capitalize on existing and hardly-utilized capacities,” commented Mr. Faris Al Rashed, Head of Derayah Ventures.