Fractal Homes, a UK-based proptech business that offers fractional property ownership in the main cities of Europe, has secured $30 million in seed a funding round.
A London-based private credit fund contributed further debt investment while White Star Capital led the round’s equity investment.
Before a focused development in the Middle East the following year, Fractal Homes will use the capital to scale its UK operations through selective employment. The company sees promise in ski resorts and Mediterranean beach areas, and it aims to expand into additional tourist and business hotspots like Paris and Madrid.
Founded in 2022 by Labib Kaddoura and Abou Bechara, Fractal Homes intends to expand its London headquarters, putting a particular emphasis on hirings in the fields of sales, marketing, and engineering. Next year, Fractal plans to establish a location in Abu Dhabi as part of an international expansion.
Additionally, the borrowed capital will be used to buy opulent homes in prestigious West London neighborhoods like Knightsbridge, Notting Hill, Chelsea, Kensington, and Mayfair. Fractal Homes has also unveiled a new website and their first offering of four opulent flats spread throughout London.
“The platform offered by Fractal Homes makes it simpler for purchasers to own and enjoy second homes in popular European locations. By dividing each home into eight equal halves, we increase access to second home ownership by lowering the initial cash requirement to buy the house and the sometimes disregarded high expense of maintaining a property.
According to Labib Kaddoura, co-founder of Fractal, “Fractal fully administers the property and takes care of cleaning, maintenance, and all operational issues that come with maintaining a home to give buyers a hotel-like experience.
According to Wadih Abou Bechara, co-founder of Fractal, “in the beginning, we will primarily focus on a Middle Eastern clientele wishing to acquire a second house in London for work and leisure.”
According to Wadih Abou Bechara, co-founder of Fractal, “European capitals are attractive to Middle Eastern buyers as centers of business, culture, and entertainment coupled with a good market entry point seeing the recent appreciation in USD; makes it a very opportune time for buyers to consider the fractional ownership model.”
“We were instantly impressed by the expertise of the Fractal team, who have identified a fundamental pain point in house ownership that can be remedied through the mix of technology and a unique strategy,” commented Eric Martineau-Fortin, CEO and Managing Partner at Whitestar Capital.”
Eric continued, “We are thrilled to go with them as they use their innovative and scalable technology to challenge the traditional property co-ownership paradigm. The goals of the Fractal team very closely reflect our ideas on the development of ties between the GCC and Europe.
The business aims to revolutionize second-house ownership. It creates a far lower entry point for Middle Eastern purchasers wishing to buy a luxurious second home in Europe by providing access to prime real estate at a fraction of its price. Through its managed co-ownership concept, Fractal strives to make second home ownership accessible, inexpensive, and hassle-free.
Image Credits: Fractal Homes