Huspy Raises $59M to Expand Proptech Services in Europe

Huspy Secures $59 Million to Expand Digital Home Buying Platform

Experiencing difficulties with traditional mortgage applications in Dubai during 2020 prompted Jad Antoun to establish Huspy. The company aims to simplify the home-buying process in the UAE through digital solutions.

Over the last five years, Huspy has evolved into a leading proptech company within the UAE. Its services have also been extended to Spain, offering digital resources for both property searches and mortgage acquisition.

Series B Funding and Growth

Huspy recently finalized a $59 million Series B funding round. This investment will be utilized to strengthen operations throughout the Middle East and to broaden its footprint in Europe, with existing investor Balderton Capital leading the charge.

In 2022, the company successfully secured over $40 million in Series A funding, alongside an extension round. Notable investors included Balderton Capital, Founders Fund, and Peak XV Partners (previously Sequoia Capital India & SEA).

Additional investors participating in these rounds were ExBorder Partners, Turmeric Capital, COTU Ventures, BY Ventures, Dara Management, and KE Partners. The newly acquired capital will facilitate Huspy’s ongoing expansion in the UAE and Spain, as well as support its entry into the Saudi Arabian market, as stated by Antoun in an interview with TechCrunch.

Navigating a Challenging Proptech Landscape

This funding is particularly noteworthy given the recent challenges faced by the proptech sector. Companies such as Opendoor and Compass have encountered difficulties in sustaining valuations and profitability amidst rising U.S. interest rates.

Many startups within the industry have also experienced cash burn and operational struggles. However, Huspy has demonstrated resilience.

Rana Yared, general partner at Balderton Capital, highlighted Huspy’s success in “building a repeatable and efficient playbook for city launches.” She also praised the company’s continuous innovation, particularly its AI-powered tools for brokers and agents, which are setting new industry standards.

The Huspy Model: Addressing Market Pain Points

Antoun’s initial experience in the UAE market revealed key areas for improvement in the mortgage process. He established partnerships with prominent banks and introduced digital pre-approvals via a platform connecting brokers and potential borrowers.

Within a three-year period, Huspy reportedly captured 30% of the UAE mortgage market, including 25% in Dubai, a globally active real estate hub. This market share, coupled with the exclusive banking relationships it fostered, provided a strong foundation for expansion.

In 2022, the company began scaling its operations into Spain, a fragmented real estate market with over 100,000 registered agents, according to Antoun.

A Network-Based Approach

Unlike iBuyer models or traditional brokerages, Huspy operates on a network-based system in both the UAE and Spain. Freelance agents utilize the platform to access property leads from marketplaces like Property Finder and Idealista.

Huspy provides these agents with CRM tools, transaction support, and integrated mortgage products through its banking partners. This approach is characterized by low overhead, resembling a real estate version of Uber rather than Zillow.

Repeatable Expansion Strategy

Antoun, formerly part of the investment team at Dubai-based VC firm Beco Capital, and deputy CEO Ziad Nassar, who oversees Huspy’s European expansion, believe they have developed a highly replicable model.

This model involves entering mid-sized cities with substantial transaction volumes and low agent efficiency, building supply through marketplace partnerships, onboarding top-performing agents, and integrating mortgage distribution.

Success in Spain and Future Plans

Huspy claims to be among the top three real estate companies in Valencia by transaction volume within just one year of operation. The company currently operates in six Spanish cities and reports over 20x year-on-year growth.

“We’ve just been here longer, and in Spain, we have better efficiency,” Antoun stated, suggesting a competitive advantage in the mortgage product offering.

The startup has reportedly assisted over 25,000 individuals in purchasing homes across its markets. Since 2022, revenue has increased by more than 10x. The platform, which generates revenue through commissions and success fees from agents and banks, facilitates transactions exceeding $7 billion.

Looking ahead, Huspy intends to launch operations in most major cities throughout Europe and the Middle East over the next four years. This region is currently experiencing a surge in proptech activity, with Nawy being another significant player securing substantial funding this year. Huspy aims to be active in over 10 cities by the end of 2025.