London-based Fractal Homes raises €28M to democratise second home ownership

London-based Fractal Homes, a startup that offers fractional home ownership across Europe’s capital cities, announced on Monday that it has secured $30M in equity and debt in a Seed round of funding. 

The equity portion was led by White Star Capital, while the additional debt investment came from a London-based private credit fund.

The company says it will use the funds to scale its UK operations with selective sales, marketing, and engineering hires. Fractal Homes is also planning to expand its operations with a base in Abu Dhabi next year. 

Fractal Homes says the debt capital will go towards acquiring luxury properties in sought-after destinations in West London such as Knightsbridge, Notting Hill, Chelsea, Kensington, and Mayfair.

Additionally, the company plans to expand its operation in holiday and business destinations, such as Paris and Madrid, as a part of its future growth plan. 

Fractal Homes: What you need to know

Founded by Labib Kaddoura and Wadih Abou Becharam, Fractal Homes is a proptech startup that aims to make second home ownership affordable and accessible through its managed co-ownership model.

“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 the initial capital outlay required to buy the home and 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,” explains Kaddoura. 

Fractal’s integrated technology platform allows clients to own, use and sell fractional interests in properties across European cities at a fraction of its cost, starting with London. 

“Initially, we will predominantly focus on a Middle Eastern clientele wanting to buy a second home in London for work and leisure. The attractiveness of European capitals for Middle Eastern buyers as centres 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,” says Abou Bechara.

Investor

White Star Capital is a multi-stage technology investment platform that invests in exceptional entrepreneurs building ambitious, international businesses. 

Eric Martineau-Fortin, CEO and Managing Partner at Whitestar Capital, says, “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.”