UAE proptech Huspy raises $59M to scale in Europe

In 2020, applying for a mortgage at a bank in Dubai could mean enduring lengthy paperwork and facing inconsistent pricing. This frustrating experience prompted Jad Antoun to launch Huspy, a startup dedicated to modernizing the home-buying process in the UAE through digital solutions. Over five years, Huspy has rapidly established itself as a leading proptech company in the region and is now making strides in Spain, offering innovative tools for home seekers and mortgage applicants. Recently, Huspy completed a $59 million Series B funding round, spearheaded by existing backers Balderton Capital and Peak XV, aimed at enhancing operations in the Middle East and furthering its reach in Europe. This follows a successful Series A round in 2022, where the company raised over $40 million from a notable roster of investors, including Founders Fund and ExBorder Partners. The fresh injection of capital will bolster Huspy’s growth trajectory in both the UAE and Spain while also facilitating its entry into the Saudi Arabian market. Antoun shared insights with TechCrunch, highlighting how the investment is crucial in a sector that has faced challenges recently, with many companies struggling against rising interest rates and market volatility. Huspy has developed a successful strategy for launching in new cities, leveraging innovative AI tools for brokers and agents. This approach has not only set a high standard in the industry but has also enabled the company to capture a significant slice of the UAE mortgage market, claiming 30% overall and 25% in Dubai alone. In 2022, Huspy ventured into Spain, a market characterized by its fragmented real estate landscape. Rather than adopting the traditional brokerage model or holding inventory, Huspy utilizes a network-based approach. Freelance agents tap into property leads from established marketplaces while benefiting from Huspy’s CRM tools, transaction support, and integrated mortgage offerings. Antoun, along with deputy CEO Ziad Nassar, believes they have devised a scalable model that is difficult for competitors to replicate. By entering mid-sized cities with substantial transaction volumes but low agent efficiency, they aim to establish partnerships and onboard top-performing agents. In less than a year, Huspy has emerged as one of Valencia’s top three real estate firms in terms of transaction volume, now operating in six cities across Spain with over 20x annual growth. Having assisted more than 25,000 individuals in purchasing homes, Huspy has seen its revenue grow significantly, surpassing tenfold since 2022. The platform generates income through commissions and success fees, facilitating transactions exceeding $7 billion. Looking ahead, Huspy plans to expand into major cities throughout Europe and the Middle East over the next four years, coinciding with a burgeoning proptech movement in the region, as other companies also secure substantial funding to enhance their operations.