Seed9 January 2023

Fractal Homes raises £24.6m in seed investment led by White Star Capital to scale its property co-ownership platform.

The seed round was led by White Star Capital and includes debt financing to support expansion into the Middle East and UK property acquisitions.

£24.6MSeed

Fractal Homes operates a proptech platform that facilitates fractional second home ownership across European capital cities. The company targets clients from the Middle East seeking managed luxury properties in prime locations.

Fractal Homes has secured £24.6m in seed funding to support its property co-ownership platform. The equity portion of the financing was led by White Star Capital, with additional debt participation from a London-based private credit fund.

The capital will be used to scale UK operations, recruit engineering and commercial talent, and acquire luxury properties in prime London districts. Following its initial UK focus, the company plans to establish a presence in Abu Dhabi and expand into other European destinations such as Paris and Madrid.

The start-up was founded by former investment bankers who identified an opportunity to make European metropolitan real estate more accessible through managed fractional ownership.

From the founder

"Fractal Homes’ platform makes it easier for buyers to own and enjoy second homes in desired European cities. We make second home ownership more accessible by splitting each home into eight equal parts reducing both the initial capital outlay required to buy the home and also the often-overlooked high cost of running a property. Fractal fully manages the property and takes care of cleaning, maintenance and all operational aspects that come with the running of a home to give buyers a hotel-like experience"

Labib Kaddoura

Co-founder at Fractal Homes

Investor perspective

"We were immediately impressed by the calibre of the Fractal team, who have identified a key pain point in home ownership that can be solved through the combination of technology and an innovative approach. We’re very excited to be with them on this journey to disrupt the property co-ownership model through their disruptive and scalable solution. Furthermore, the Fractal team’s ambition is strongly aligned with our views of growing connectivities between the GCC region and Europe."

Eric Martineau-Fortin

CEO and Managing Partner, White Star Capital