Middle East Debut for Founders Fund
Founders Fund has made its inaugural investment in the Middle East by backing UAE-based proptech startup Huspy. The $37 million Series A round, one of the largest at this stage in MENA, was led by Sequoia Capital India. Fifth Wall, the largest VC firm backing real estate and proptech startups, also participated in the round, along with Chimera Capital and existing investors from Huspy’s undisclosed seed round last April.
The Rise of Proptech
Software has disrupted every traditional industry, from high-volume businesses with low-ticket items like food to medium-volume businesses with medium-ticket items like vehicles. Low-volume business with high-ticket items, the category that includes real estate, is also being transformed by technology. Proptech startups are leveraging data analytics, AI, and other digital tools to streamline property transactions, improve efficiency, and enhance customer experience.
Huspy’s Mission
Huspy is at the forefront of this disruption in the Middle East. Founded by GV Ravishankar, a seasoned entrepreneur with a background in real estate, Huspy aims to transform the home-buying and financing experience in the MENA region. The startup has already demonstrated strong unit economics and a deep focus on building for the long term.
Expansion Plans
The new funding will rev up Huspy’s expansion as it doubles down on growth across the UAE and Spain, two markets with a total addressable market of $13 billion. The company plans to move into other parts of Europe even as it invests in technology development to cater to future demand. With its strong value proposition and healthy unit economics, Huspy is well-positioned to become a leader in the proptech space.
Quotes from Investors
GV Ravishankar, Managing Director at Sequoia Capital India, said: "In a short span of time, the company has demonstrated its strong value proposition for the real estate ecosystem and has become the market leader in mortgage broking in the UAE with healthy unit economics."
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Related Topics
- Beco Capital
- Breyer Capital
- Fifth Wall
- Fintech
- Founders Fund
- Huspy
- PropTech
- Real Estate
- Sequoia Capital India
- Spain
- Startups
- Venture
- Venture Capital
About the Author
Tage Kene-Okafor is a reporter at TechCrunch based in Lagos, Nigeria, covering the intersection of startups and venture capital in Africa. He can be reached at tage(dot)techcrunch(@)gmail.com.
This article has been edited for length and clarity.
