Revolutionizing the Rent Now, Pay Later Sector in Saudi Arabia: Meet Rize
The rent now, pay later sector in Saudi Arabia is on the brink of major expansion, with startup Rize leading the charge in enhancing the industry’s efficiency.
With a significant down payment typically required for tenants to secure a rental property in the Kingdom, Rize is determined to foster sustainability within the sector.
Founded in 2021 by Ibrahim Balilah and Mohammed Al-Fraihi, Rize is transforming the Saudi rental market with its innovative model. This model converts annual lease payments from a single full payment to 12 monthly installments for tenants, while property owners receive the full annual rent upfront.
Driving Growth and Innovation
In an exclusive interview with Arab News, Balilah shared Rize’s mission to broaden access to flexible renting solutions.
“Currently, Rize operates in Riyadh, Jeddah, and Dammam. Our goal is not only to establish a strong presence in the Saudi market but also to expand into the commercial sector,” he stated.
Balilah outlined the company’s financial targets, aiming to secure over SR50 million ($13.3 million) in successful rental requests by 2024 to demonstrate its growth. “With approximately SR330 million in rental requests already received, Rize is strategically scaling its operations to meet the growing market demand,” he explained.
Pioneering Innovation in the Rental Market
Balilah emphasized Rize’s pioneering role in the rent now, pay later market, positioning the company as a trailblazer in the sector.
“We see ourselves as the frontrunner in this industry, having developed an application that streamlines the entire rental process,” he affirmed.
The company is currently focused on scaling its operations by automating various processes, such as contract signing, tenant screening, and e-booking accessibility through the app, all of which are typically cumbersome for tenants.
Additionally, Balilah highlighted Rize’s strategic partnerships with real estate owners, providing the company with access to a wide range of apartments and strengthening its market presence.
Securing Funding and Forging Strategic Partnerships
Balilah elaborated on Rize’s approach to securing funding and building relationships with venture capitalists.
In February, Rize successfully raised $2.9 million through a seed round from several venture capital firms and angel investors.
“Our business model requires funding, leading us to engage with seven venture capital firms across two investment rounds,” Balilah explained.
The company’s strategy of attracting multiple VCs with smaller investment amounts aims to secure immediate capital and lay the groundwork for future financial support.
Balilah disclosed plans for a Series A funding round within the next year to drive Rize’s expansion and maintain its upward trajectory.
Easing the Financial Burden for Renters
Balilah underscored the critical role of the rental market in supporting Saudi Arabia’s hospitality sector, particularly given the sizable expatriate population in the Kingdom.
He highlighted a significant challenge in the rental market due to a lack of innovation and technological integration, making rental transactions complex.
“Rize addresses this issue by handling the upfront payment and then leasing the property back to the tenant on a monthly basis,” he explained.
The company’s tenant-focused approach streamlines the rental process, allowing tenants to apply through the app and submit their requests.
Rize offers a marketplace for renters who understand and support the RNPL model, facilitating direct booking through the application.
The company has formed partnerships with major real estate developers like Al Safa, Al Ramz, Makeen, Al Majdiah, and Al Ajlan Riviera, all of whom are integrating Rize’s offerings into their projects.
Balilah emphasized the growing interest in the RNPL business model among real estate owners, as it accelerates the leasing process for their units.