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Beco Capital gets its second billion-dollar exit with the sale of stake in Property Finder

Beco Capital, one of the leading VC firms of the region has scored its second billion-dollar exit with the sale of its entire stake in Dubai-headquartered proptech Property Finder. The shares held by Beco Capital have been bought back by Property Finder, making this one of the first transactions of its kind in the region. Property Finder was able to fund the purchase by raising $90 million in debt financing from Francisco Partners.

Property Finder last secured external financing in 2018, raising $120 million in a round led by General Atlantic at a valuation close to $500 million. The firm is now buying back shares from Beco Capital at twice that valuation.

VNV Global (formerly known as Vostok New Ventures) which first invested in Property Finder in 2015 exited its entire 9.5 percent stake in the company for $39 million in July 2022, which implies a valuation of $411 million. VNV Global had invested a total of ~$25 million in the firm across different rounds, mainly $20 million Series B which it led in 2015.

Beco Capital first invested in Property Finder in 2013 as the first institutional investor in the startup. The firm then followed on a few years later by investing an additional sum in the real estate startup. The total amount invested by Beco Capital and the exact returns are not clear. However, Dany Farha, its co-founder and Managing Partner, described the exit as yielding “true venture returns” for their investors.

Speaking about why they decided to exit their stake, Beco Capital’s executive said, “As venture investors, we have to return capital to our limited partners and sunset the fund. Otherwise, we would have loved to remain investors for much longer, as they have only just gotten started. It’s still day one for Property Finder, and we will continue to support the company where we can.”

Started in 2007, Property Finder is one of the leading real estate portals of the region, with presence across UAE, Saudi Arabia, Egypt, Bahrain, and Qatar. It is also a large shareholder in Zingat, a leading property website in Turkey.

Michael Lahyani, the founder and CEO of the firm, commenting on the buyback from Beco, said, “The trust that the Beco Capital team and Dany Farha invested in us, since backing us 11 years ago, underscores the quality of our operations and the resulting outcomes.”

Beco Capital’s first billion-dollar exit was Careem, which was acquired by Uber for $3.1 billion in 2019. It was an early investor in the ride-hailing firm. The Dubai-based VC is also an early investor in Kitopi, which became a unicorn in 2021.

It was also one of the biggest backers of Swvl, which went public on NASDAQ after a $1.5 billion merger with a SPAC but has since struggled, with its market cap currently hovering around $70 million.

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