UAE proptech Huspy raises $59M to scale in Europe

Dubai-based proptech pioneer Huspy has successfully closed a substantial $59 million Series B funding round, led by existing investor Balderton Capital. This significant capital injection is strategically earmarked to accelerate the company’s operations across the Middle East and deepen its formidable footprint in Europe, solidifying its position as a transformative force in the digital home-buying landscape.

The journey of Huspy began in 2020, born out of the challenges individuals faced in Dubai’s mortgage application process – often involving months of cumbersome paperwork or significant price discrepancies in listings. Co-founder Jad Antoun established Huspy with a clear vision: to streamline the home-buying experience in the UAE through innovative digital solutions.

Over the past five years, Huspy has evolved into one of the largest proptech companies in the UAE, expanding its innovative digital tools for home search and mortgage acquisition into Spain. This latest funding round follows a highly successful period in 2022, where Huspy raised over $40 million in Series A funding and an extension from a consortium of leading global investors, including Balderton Capital, Founders Fund, and Peak XV Partners (formerly Sequoia Capital India & SEA). New investors in the Series B round include ExBorder Partners, Turmeric Capital, COTU Ventures, BY Ventures, Dara Management, and KE Partners. According to Antoun, this fresh capital will drive Huspy’s continued growth in the UAE and Spain, alongside supporting its strategic launch into Saudi Arabia.

This investment is particularly notable given the challenging climate in the proptech sector over the past few years. Companies like Opendoor and Compass have grappled with maintaining valuations and profitability amidst rising interest rates in markets such as the U.S., with many startups struggling or burning through cash. Huspy’s success in securing significant funding underscores its robust business model and proven efficiency.

Rana Yared, General Partner at Balderton Capital, lauded Huspy’s achievements, stating, “Huspy has built a repeatable and efficient playbook for city launches, and their pace of innovation — especially around AI tools for brokers and agents — continues to raise the bar for the entire industry.” Antoun further explained that Huspy applied lessons from its initial success in the UAE to identify and address pain points in a country’s mortgage process. This involved forging key partnerships with leading banks and introducing digital pre-approvals on a unified platform that connects brokers and borrowers seamlessly.

Within just three years, Huspy proudly claims to have captured an impressive 30% of the UAE mortgage market, including a dominant 25% share in Dubai, one of the world’s most dynamic real estate hubs. This remarkable traction, coupled with its exclusive banking relationships, served as a crucial springboard for its international expansion. In 2022, Huspy began its strategic scaling into Spain, a highly fragmented real estate market characterized by over 100,000 registered agents.

Unlike iBuyer models that own inventory or traditional brokerages, Huspy operates on a highly efficient, network-based model across both the UAE and Spain. Freelance agents leverage Huspy’s platform to access property leads from major marketplaces like Property Finder and Idealista. In turn, Huspy empowers these agents with advanced CRM tools, comprehensive transaction support, and integrated mortgage products facilitated through its extensive network of banking partners. This low-overhead approach closely resembles an “Uber for real estate,” optimizing efficiency and reach.

Jad Antoun, previously part of the investment team at Dubai-based early-stage VC Beco Capital, and Deputy CEO Ziad Nassar, who spearheads Huspy’s European expansion, are confident that the company has discovered a replicable and resilient model. Their strategy involves entering mid-sized cities with high transaction volumes but low agent efficiency, building supply through strategic marketplace partnerships, onboarding top-performing agents onto the platform, and integrating robust mortgage distribution. This methodical approach has yielded significant results: in under a year, Huspy claims to be one of the top three real estate companies in Valencia by transaction volume. The company currently operates in six Spanish cities and boasts over 20x year-on-year growth in the region.

“I think it’s going to be difficult for someone to compete on the mortgage product specifically across both markets,” Antoun emphasized, attributing their competitive edge to longer market presence and superior efficiency in Spain. Huspy reports having facilitated home purchases for over 25,000 individuals across its markets and has seen its revenue grow by more than 10x since 2022. The platform, which generates revenue through commissions and success fees primarily from real estate agents and banks, facilitates over $7 billion in transactions annually.

Looking ahead, Huspy has ambitious plans to launch in most major cities across Europe and the Middle East over the next four years. This region is currently experiencing a significant proptech boom, with other key players like Nawy also securing substantial funding rounds this year. Huspy projects its operations to span over 10 cities by the end of 2025, continuing its mission to redefine digital home ownership globally.