UAE-based PropTech start-up Huspy raised $37 million in a new funding round led by Sequoia Capital India to boost its core technology and expand into new geographies.
California-headquartered venture capital firms Founders Fund and Fifth Wall also made their Middle East investment debut in the round, Huspy said in a statement on Tuesday.
Chimera Capital joined returning investors Breyer Capital, Venture Friends, Cotu Ventures, Venture Souq and BY Venture Partners in the round.
The new capital will be used to “extensively invest in technology development, double down on growth in the UAE and Spain, and expand across Europe”, Huspy said.
“We have laid the foundation for a very defensible business that’s redefining home ownership in EMEA [Europe, Middle East and Africa],” Jad Antoun, co-founder and chief executive of Huspy, said.
“Huspy has grown to become one of the largest property platforms, facilitating billions of dollars in volume … and we look forward to working together [with our investors] to reshape the world’s largest asset class.”
Investors have increasingly chosen PropTech after the coronavirus pandemic forced companies, including those in the real estate sector, to digitise and ensure business continuity.
Connected buildings, real estate analytics, mortgage solutions, blockchain and online viewing technology are some of the focus areas for PropTech companies which are looking to disrupt the traditional market through digital solutions for the entire real estate value chain.
Founded in 2020, Huspy aims to simplify the home financing process and overall property buying experience for its clients.
It acts as a link between potential property buyers, and banks and private lending companies.
The platform finds mortgage plans that match users' needs, obtains pre-approvals from banks and helps to close the deals.
It has achieved a nearly 25 per cent month-on-month growth in the past year and manages $2 billion in gross merchandise value annually, the statement said.
Huspy also announced the launch of its full-service property marketplace, to offer other real estate services, complementing its position in the home finance segment.
While real estate continues to be an in-demand asset class around the world, growing by 59 per cent year-on-year last year, less than 1 per cent of home-buying transactions are completedthrough digital channels, the company said.
It aims to target the “total addressable market of $13bn across the UAE and Spain”, the statement said.
In January, Huspy acquired Home Matters, a Dubai-based mortgage and property consultant, for an undisclosed sum.
In April last year, it also raised an undisclosed sum in a funding round led by Athens-based Venture Friends.