Partment, an Egyptian PropTech start-up that offers co-owned second homes, has raised $1.5 million in its early stage funding round.
The pre-seed round to help the company start operations was co-led by NClude, a FinTech fund backed by three of Egypt’s largest national banks and managed by Dubai-based venture capital company Global Ventures.
Abu Dhabi-based Plus Venture Capital, a Middle East and North Africa-focused venture capital company that has made more than 200 investments in the region since 2010, co-led the funding round. A group of angel investors, including tech executives and real estate industry veterans, also participated.
Established earlier this year, Partment will use the funding to enhance its Beta version online platform and deploy its minimum viable product (MVP) in Egypt.
“Partment is a new concept in Egypt, and we believe it will change how people buy and use real estate in the local and international market,” said Partment chief executive and co-founder Nadim Nagui.
“We are very proud to be backed by leading investors who understand and support our vision.”
PropTech refers to the use of technology and innovation within the real estate industry. Investment volume in PropTech companies worldwide grew to a peak of $24.3 billion in 2021 from $600 million in 2010, according to Statista research.
Partment — which means 'part' of an apartment — allows people to co-own a second home with up to seven others, while it handles the management and maintenance of the property. Through a booking system, each co-owner can reserve a quota of 41 nights.
Unlike timeshare, co-owners fully own a portion of real estate and are able to sell their shares after 12 months.
"Our first launch market will be the Red Sea region in Egypt, but, of course, we are keeping our eyes open for other preferred destinations," Mr Nagui told The National.
Any property besides a primary residence is considered a second home, and Partment is focused on holiday or remote work use, Mr Nagui said.
Partment was co-founded by Mr Nagui, chief operations officer Ahmed Raggal and chief technical officer Chinmaya Das.
Mr Nagui and Mr Raggal spent several years at Uber, leading expansion and operations in the Middle East and Europe. Mr Das has worked in software development at companies in India, Singapore and the Netherlands, including Booking.com and Amazon.
“We are dedicated to accelerating FinTech innovation and driving financial inclusion by backing global-mindset founders, and are delighted to have led Partment’s latest funding round,” said Eslam Darwish, founding general partner of NClude.
Partment’s “innovative new concept of second home co-ownership will bolster the demand and attract many homebuyers and disrupt the real estate industry in Egypt and beyond”, said Hasan Haider, managing partner at Plus Venture Capital.
Partment’s funding was one of several pre-seed rounds raised by Egyptian start-ups this month, including e-commerce start-up Mazaya with $5m and investment banking marketplace Exits.me with $1m.