Huspy, a UAE-based proptech company, has raised US$59 million in its series B funding round.

The round was led by existing investors Balderton Capital and Peak XV Partners, with additional participation from ExBorder Partners, Turmeric Capital, and BY Ventures.

Founded in 2020, Huspy provides digital solutions for real estate transactions. Its aim is to simplify home buying and mortgage processes.

The company operates in the UAE and Spain, claiming to hold a 30% share of the mortgage market in the UAE.

The new funds will be used to support Huspy’s growth in current markets.

Additionally, the company plans to expand into Saudi Arabia and other major cities in Europe and the Middle East by the end of 2025.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ MENA’s proptech surge reflects global real estate’s digital transformation journey

Huspy’s success comes amid a significant shift in the real estate industry, where 92% of executives acknowledge digital transformation’s impact, yet only 34% have implemented enterprise-wide digital strategies 1.

The $70 million invested in MENA proptech in 2023 reflects the region’s accelerated adoption curve, with the UAE and Saudi Arabia emerging as innovation hubs despite the global funding decline from pandemic peaks 2.

This parallels broader proptech investment patterns, where global funding reached $19.8 billion in 2022 despite a 38% decline from 2021’s record levels, demonstrating sustained investor confidence despite market corrections 3.

Huspy’s capture of 30% market share in just three years exemplifies the region’s readiness for digital mortgage solutions, addressing a sector where 71% of real estate executives believe technology can significantly enhance customer experience and operational efficiency 1.

The company’s expansion follows a documented pattern where proptech first disrupts consumer-facing processes like mortgage applications before transforming deeper industry operations, similar to how online listing platforms evolved into comprehensive transaction tools.

2️⃣ Asset-light models show resilience in challenging proptech environments

Huspy’s network-based approach contrasts sharply with inventory-heavy models like Opendoor that have struggled amid interest rate fluctuations, highlighting a critical business model distinction within proptech.