Ejari Secures $50 Million Credit Facility to Expand Into Commercial Leasing in Saudi Arabia
Ejari, a rental payment service based in Saudi Arabia, increased its credit arrangement with Partners for Growth (PFG) to $50 million as it seeks to move into commercial leasing. As part of this event, the rental payment platform will be able to offer rent-now-pay-later services to businesses, including small and medium-sized businesses.
This financing arrangement in accordance with Sharia terms expands an already existing arrangement made back in the year 2024.
Under its business model, Ejari pays landlords the rent upfront, while tenants repay the amount through monthly instalments. The expanded facility provides the capital needed to support this arrangement as the company works towards entering a new segment of the property market.
Founded in Riyadh in 2022, Ejari operates across more than 40 cities in Saudi Arabia. The company has received requests to facilitate more than $500 million in rental payments. This figure represents applications received for its service, rather than the total amount of rent financed or revenue generated.
Ejari prepares for commercial leasing
The new financing will help the firm continue with its current home rental business and diversify into commercial rent.
According to Yazeed Al-Shamsi, Ejari's co-founder and CEO, the increased financing will help develop the company's capacity to serve tenants throughout Saudi Arabia, as it prepares for commercial leasing business.
The platform deals with one of the main issues in property renting where tenants usually have monthly salaries but have to make rent payments once a year or once in six months. Ejari allows them to spread these payments over a longer period in exchange for a service fee.
The company's published pricing for a 12-month contract includes a 15% fee when the landlord receives the full rental amount upfront and the tenant pays monthly. Other payment arrangements carry different charges.
Series A funding expected soon
The financing expansion comes as Ejari works towards closing its Series A funding round. The company has not disclosed the expected investment amount or the participating investors.
Its relationship with PFG began with a $14.65 million debt-and-equity seed financing arrangement in October 2024. Existing equity backers include BECO Capital, Vision Ventures, anb seed, Alinma Pay, Rua Growth Fund, Salica Oryx Fund, Aqar and Sanabil 500 MENA.
For Ejari, the additional credit capacity provides funding for rental transactions, while equity financing supports its team, technology and development of new services. Its planned commercial leasing expansion will bring the platform into another part of Saudi Arabia's property rental market.
