Saudi Arabia-based property technology startup Ejari, founded in 2022, is expanding to meet growing demand for flexible rental solutions.

The company offers a rent-now, pay-later model by leasing properties from landlords and subleasing them to tenants through installment plans.

It currently operates in 17 cities across eight regions in Saudi Arabia, with over US$50 million in service demand.

CEO Yazeed Al-Shamsi said the company will expand into commercial and industrial leases and offer services like furnishing, maintenance, and relocation through third-party partners.

In October 2024, Ejari raised US$14.65 million in seed funding to enhance technology, grow the team, and develop new services.

🔗 Source: Arab News

🧠 Food for thought

1️⃣ Saudi proptech sector shows resilience amid regional downturns

Saudi Arabia’s property technology sector is demonstrating notable growth even as similar markets struggle elsewhere in the region.

While the broader Emerging Venture Markets experienced a 36% decline in proptech funding in 2024, Saudi Arabia bucked this trend with a 35% increase, reaching $9 million in total funding 1.

This growth is further evidenced by the increased deal activity, which jumped from four to seven deals in the first nine months of 2024 compared to 2023 1.

Ejari and Ajras represent a new wave of Saudi proptech startups founded in 2022 that have quickly secured substantial funding, with Ejari raising a $14.65 million seed round and Ajras securing $29.5 million across multiple rounds 21.

The sector’s resilience reflects both investor confidence in the Saudi real estate market’s digitization potential and the government’s broader Vision 2030 initiative to diversify the economy away from oil dependency.

2️⃣ Rent-now-pay-later models address a nationwide pain point

The rapid adoption of RNPL (rent-now-pay-later) solutions indicates a significant market gap in Saudi Arabia’s traditional real estate payment structures.

Both Ejari and Ajras have built their business models around addressing the same fundamental challenge: the requirement for tenants to make burdensome six or 12-month upfront rental payments 21.