The nationally inward-looking investment follows a wider self-sufficiency trend within the country’s ecosystem, in which two-thirds of investments for local startups came from the Saudi-based startups
Saudi-based Mabaat, a Proptech platform seeking to disrupt the short-term rental market, has received $2.4 million in a Seed round led by Riyadh-based venture capital (VC) Derayah Ventures, with participation from Riyadh-based early-stage VC SEEDRA Ventures.
Since its October 2019 founding by CEO Talal Al Sorayai, Mabaat has evolved its digital platform to onboard and manage properties on behalf of owners, offering real-estate for mid-range and high-end private homes and compounds.
It has navigated the short-term rental market by presenting transparency through real-time information for property partners and renters, streamlining the booking and payment processes, as well as providing centralised access to cleaning and maintenance.
“Mabaat’s innovative platform is unique as it offers property partners higher occupancy levels at attractive rates,” stated Al Sorayai, saying that the direct support from the Saudi government coupled with partnerships with the kingdom’s Ministries of Investment and Tourism make Mabaat “well-positioned to disrupt the alternate accommodations market throughout the Kingdom.”
The nationally inward-looking Saudi funding of the round follows a wider trend across the country, in which over two-thirds of investors in Saudi-based startups were themselves Saudi-based.
Mabaat plans to use these investments to boost its outreach efforts to reach regional travellers and recruit new talent, a strategy that aligns with the country’s Vision 2030 ambitions, which include investing in the tourism sector to increase the sector’s contributions to the country’s GDP to 11.5%.