Home News Dubai-based Stake raises $8 million to let people across the globe invest in local properties – TechCrunch

Dubai-based Stake raises $8 million to let people across the globe invest in local properties – TechCrunch

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Dubai based startup stake offers private investors around the world to purchase a piece of rental property in the major cities of the United Arab Emirates to generate regular income. The startup, which was founded in 2020, claims that Dubai’s real estate rules have allowed it to attract investment users to its platform from over 80 countries around the world.

Founded in 2020 by Manar Mahmassani, Rami Tabbara and Ricardo Brizido, the company has raised $8 million in a pre-series A round from investors including BY Ventures, MEVP and Vivium Holdings, expanding its portfolio to include Saudi Arabia and Egypt. Launched at The company raised its first $4 million seed round last year.

“This round is a testament to what we are building with Stake and our mission to bring access and liquidity to the oldest, largest and most popular asset classes in the world. Expanding into Saudi Arabia and Egypt, we can continue to attract top talent to our team and solidify Stake’s position as the category leader in the MENA region.

In a call with TechCrunch, Tabbara said after more than 15 years in the real estate business, many people want to invest in the MENA region but can’t afford to put a lot of money into it without paying huge fees. said he noticed. Brokers and developers. So he wanted to accelerate the real estate investment process with Stake.

Image credit: stake

The company says its platform already has luxury properties listed for rent. To acquire a property, the stake looks at factors such as location, building quality, views, and whether it has tenants. If the property isn’t being rented, the company will use the data to list properties that are available for rent immediately, Tabara said. Stake pays investors over 1 million AED ($272,249) in rental income, which is paid monthly.

Stake currently manages over 44 properties with a total value of AED 56 million ($17.9 million). The company claims to have achieved an average monthly growth rate of 17% in both investors and assets under management (AUM).

“Our platform currently boasts 42,000 registered users and over 2,100 active investors. The site has users from many countries, but there are also People are our top five investor base,” said Tabbara.

Users can quickly register on the platform and invest from AED 500 ($136).because Dubai investment rules Individual investors can only invest up to 183,500 AED ($50,000) per year. Proptech companies also limit the maximum ownership by a single investor in real estate to 33% in order to distribute profits evenly.

The company does not rely on financing to acquire homes. All funds to purchase real estate come from investors. Dubai’s real estate regulations allow partial deeds, but investors are limited to her four, so Stake created a special-purpose vehicle for each property to facilitate registration of deeds. to Normally, all properties have his 5-period investment period, but the home’s value has risen by 30% in the market, and investors can vote to sell it.

Stake’s business model relies on a variety of fees. When an investor buys a property, the company charges the investor her 1.5% and an additional 0.5% annually for maintenance. In addition, a Know Your Customer (KYC) and Anti-Money Laundering fee of 0.2% is prepaid and 0.1% annually from the second year onwards. The company also charges investors an exit fee of 2.5% when they sell their shares. Additionally, Stake receives his 15% cut from profits if the asset is sold at a higher rate than it was acquired. While the company is not yet profitable, it has achieved 470% year-over-year growth in revenue.

Within the next 12 months, apart from launching platforms in Egypt and Saudi Arabia, the company also hopes to build a second-day trading platform where investors can sell real estate stakes to other investors. . Stake is focused on launching ways for people to invest in vacation properties available on platforms like Airbnb. Comoco When here trying in the US

Stake’s closest competitor in the local market is SmartCrowd, $3 million bridge round in JuneTabbara claims his company has already outperformed SmartCrowd when it comes to AUM.

“We rely on our diverse real estate team, technology and experience to become the most prominent real estate investment platform in the Middle East and North Africa (MENA) region,” he said.

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