Stake raises $4 million Seed round

Dubai-based proptech startup Stake has raised a $4 million Seed round led by Combined Growth Real Estate with participation from non-public household workplace Vivium Capital, Verve Ventures, Mishaal Alireza a Saudi Arabian angel investor, Lama Holding from Riyadh, and shareholders of the UK’s Chalgrove Properties Limited, who’re the builders of the tallest residential tower in Western Europe, Landmark Pinnacle in London.

Launched in 2020 by co-founders Rami Tabbara and Manar Mahmassani, Stake gives a digital, “borderless”, market to supply customers reasonably priced choices for actual property funding

The startup plans to make use of the funds to spend money on gross sales, advertising, and expertise in addition to introduce new merchandise to boost its platform.

Stake can also be contemplating an enlargement to Saudi Arabia and the UK, aided by the current rise within the regional actual property market

Press launch

Helped by the UAE’s exemplary dealing with of the coronavirus pandemic, property transactions have soared within the Emirates with efficiency at pre-Covid-19 ranges and exceeding 2020 in Q1 2021. Despite the slowdown feared, the actual property market is buoyant with worldwide traders contributing to report breaking property transactions. 

Against this backdrop, Stake, a Dubai-based fintech and actual property funding platform which launched in December 2020 to disrupt the UAE’s actual property funding market, at the moment publicizes that it has raised US$4 million in a Seed funding round led by Combined Growth Real Estate, an organization that’s led by Amer Hammour, who’s the Founder and Chairman of Madison Marquette, a US-based actual property funding administration firm with $6 billion of property below administration and a member of the Capital Guidance group. 

It additionally attracted participation from Vivium Capital, a Dubai based mostly non-public household workplace in addition to Verve Ventures, Lama Holding from Riyadh, Mishaal Alireza a Saudi Arabian angel investor, and shareholders of the UK’s Chalgrove Properties Limited, who’re the builders of the tallest residential tower in Western Europe, Landmark Pinnacle in London

Stake will use the funds to scale and improve the platform by introducing thrilling new merchandise and options, spend money on gross sales and advertising, and to develop the present group of 15 to assist the agency’s ambitions in expertise, product growth and operations. 

Commenting on the profitable funding round, co-founder Rami Tabbara mentioned: “Our shareholders imagine that in at the moment’s world there’s a a lot better approach of investing in actual property. Through Stake, we’ll allow anybody to take part on this asset class in a straightforward, clear, and digital approach. This fundraise permits us to construct the go to digital actual property funding platform for Dubai property and ultimately the area. We are centered on bringing the most effective property funding offers to our shoppers.”

Manar Mahmassani, co-founder of Stake, added: “When we launched Stake, we made clear our objective to democratise actual property funding and treatment to ills of Dubai’s property market, which prevented the younger from collaborating and delivered unattractive returns for knowledgeable traders. Our shareholders imagine in our imaginative and prescient for a world the place actual property is a totally liquid and absolutely accessible funding asset class, obtainable to everybody trying to protect and develop their wealth. With this fund increase, we are able to speed up our journey to radically enhance the actual property funding market and convey this tangible asset into the brand new digital age.”

Amer Hammour, Chairman of Madison Marquette, commented: 

Based in DIFC’s Fintech Hive and controlled by the DFSA, Stake permits customers to browse pre-vetted alternatives of properties and make investments from as little as AED 2,000 (US$545). The firm is steadfast in its mission to create the go-to digital, borderless market for locating and investing in what the group confer with as “no-brainer” actual property property as a result of Stake’s deal with prime places the place the rental demand is excessive and the long-term fundamentals shall be a robust driver of capital appreciation.

The platform is a protected, safe and cost-efficient approach for anybody to leap on the property ladder and begin to construct wealth by way of a diversified portfolio of high quality property, which at present consists of models in Downtown Dubai, Dubai Marina and shortly DIFC and City Walk. Onboarding takes just a few minutes and income from rental earnings are distributed sometimes month-to-month, permitting retail traders to create a gradual and dependable supply of secondary, passive earnings. It gives a extra sensible various than shopping for property outright, because the expertise is completely on-line, clear, and hassle-free.

Since launching, Stake has grown from power to power, attracting over 4,000 registered customers from 54 totally different nationalities and attaining 30% month on month enhance in gross sales. The firm can also be in discussions with strategic companions and regulators within the Kingdom of Saudi Arabia, and has its sights set on enlargement into the UK. Stake’s advisors embrace Daniel Miller, the co-founder of Fundrise, the primary and largest actual property crowd-investing platform within the US, in addition to Gaurav Shivpuri and Fadi Moussali, each veterans at JLL, the main world actual property advisory agency.

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