Rize Cashes In US$35 Million In Series A Round
With a foothold in Riyadh, the company is gearing up to expand its presence into the Western and Eastern regions of Saudi Arabia.
Rize, a Saudi-based real estate tech startup, has raised US$35 million in a Series A funding round led by Raed Ventures, with backing from SEEDRA Ventures, Aqar, JOA Capital, NAMA Ventures, and HALA Ventures. The company aims to use this funding to offer innovative technological solutions that meet the needs of tenants and property owners.
Founded by Ibrahim Balilah and Mohamed Al-Frahi in 2021 as a rent-now-pay-later (RNPL) solution, the platform empowers tenants to pay their annual rents through flexible monthly installments rather than a lump sum. Since its establishment, Rize has facilitated rental transactions exceeding $133 million on its platform.
In an interview with Inc. Arabia, Balilah, who is CEO of Rize, said, “The RNPL model is revolutionizing Saudi Arabia's rental market by addressing a critical pain point: landlords' requirement for full annual rental payments upfront.”
He continued, “Rize bridges this gap by offering landlords immediate full rental payments while enabling tenants to pay in monthly installments. This innovation increases affordability for tenants and ensures landlords experience no cash flow disruptions, effectively enhancing the rental ecosystem.”
This is the startup's second funding round, following a seed round that closed in February 2024, when Rize raised $2.9 million, with participation from Seedra Ventures, Hala Ventures, JOA Capital, and RZM Investments, alongside other investors.
Rize has formed a debt financing partnership with Partners for Growth , a global investment firm that specializes in providing customized debt financing solutions to high-growth companies, primarily in the technology, life sciences, and fintech sectors. This initiative aims to fuel its growth and expand its service offerings. It also aligns with the Kingdom's vision for digital transformation and the advancement of the real estate sector.
Balilah elaborated on the ways that Rize leverages technology and automation to streamline the leasing process for tenants and property owners. “Rize employs cutting-edge technology and automation to transform the leasing journey," he explained. "Our app provides a seamless experience, from rental requests to tenant screening, approval, offer generation, and contract signing through the Ejar system. Artificial intelligence (AI) and machine learning power our tenant screening process, analyzing financial and behavioral data to ensure optimal matches and lower default risks. These advancements reduce administrative burdens for property owners and offer tenants a fully digitalized, hassle-free experience.”
Rize’s RNPL service is set to debut on the Aqar platform, a leading real estate marketplace in the MENA region, designed to connect property seekers with real estate opportunities through advanced technological solutions, following their participation in Rize’s investment round. This integration will provide tenants with flexible monthly payment options, transforming the rental experience. By combining Rize’s solutions with Aqar’s platform, the collaboration aims to streamline leasing processes and deliver support for tenants, further enhancing convenience and accessibility in the real estate sector.
With a foothold in Riyadh, the company is gearing up to expand its presence into the Western and Eastern regions of the Kingdom. Through its app, Rize is streamlining the leasing process with advanced technological solutions and automation, with the aim of elevating the user experience.
On expanding into Saudi Arabia's Eastern and Western regions, Balilah said, “Expanding into these regions brings opportunities and challenges. Key hurdles include tailoring marketing strategies to diverse demographics, ensuring platform scalability to handle increased demand, and maintaining high-quality service standards. Additionally, navigating different regional regulations and building strong local partnerships will be crucial for successful growth."
On his aspirations to scale Rize beyond the Kingdom in the future, perhaps to other markets in the GCC, Balilah said, “Our primary focus is on the Saudi residential market, which is vast and with potential. We aim to dominate this market by capturing the largest share and offering complementary services to landlords, owners, and tenants through our app. Digitalizing related services further cements our commitment to innovation and meeting the unique demands of this market. While GCC expansion may be a long-term consideration, our current priority is solidifying our leadership position within Saudi Arabia.”
