Dubai, UAE – Beco Capital, one of the region’s leading venture capital firms, has achieved its second billion-dollar exit by selling its entire stake in Dubai-based proptech company, Property Finder. This landmark transaction, one of the first of its kind in the region, saw Property Finder buy back Beco Capital’s shares, funded by a $90 million debt financing from Francisco Partners.
In 2018, Property Finder last secured external financing, raising $120 million in a round led by General Atlantic at a valuation close to $500 million. The firm is now repurchasing shares from Beco Capital at twice that valuation.
VNV Global, formerly known as Vostok New Ventures, initially invested in Property Finder in 2015 and exited its entire 9.5 percent stake in the company for $39 million in July 2022, implying a valuation of $411 million. VNV Global had invested approximately $25 million in the firm across various rounds, primarily leading a $20 million Series B in 2015.
Beco Capital was the first institutional investor in Property Finder in 2013 and made subsequent investments in the startup. While the total amount invested and the exact returns remain undisclosed, Dany Farha, co-founder and Managing Partner of Beco Capital, described the exit as yielding “true venture returns” for their investors.
Explaining the decision to exit, a Beco Capital executive stated, “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 begun. It’s still day one for Property Finder, and we will continue to support the company where we can.”
Founded in 2007, Property Finder is a leading real estate portal with a presence across the UAE, Saudi Arabia, Egypt, Bahrain, and Qatar. It is also a significant shareholder in Zingat, a leading property website in Turkey.
Michael Lahyani, founder and CEO of Property Finder, commented on the buyback, stating, “The trust that the Beco Capital team and Dany Farha placed 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 with Careem, which was acquired by Uber for $3.1 billion in 2019. The Dubai-based VC was an early investor in the ride-hailing firm. Additionally, Beco Capital was an early investor in Kitopi, which became a unicorn in 2021.
Beco Capital also significantly backed Swvl, which went public on NASDAQ following a $1.5 billion merger with a SPAC. However, Swvl has since faced challenges, with its market cap currently around $70 million.