Saudi Arabia’s leading alternative hospitality platform, Gathern, has closed a 270 million SAR ($72 million) Series B funding round. The round was led by Sanabil Investments, which is wholly owned by the Public Investment Fund (PIF), and positions the company for a future initial public offering (IPO) on the Saudi stock market (Tadawul).
By the Numbers
The funding round was based on a valuation exceeding 1 billion SAR (~$266 million) and comes after a period of explosive growth:
- $72 Million (270M SAR): The size of the Series B funding round.
- $266M+ (1B+ SAR): The company’s current valuation.
- 72,000+ Properties: The number of private tourist accommodations listed on the platform.
- 44% Market Share: Gathern’s dominant share of the Kingdom’s alternative hospitality sector.
- 500%+ Growth: The platform’s revenue growth over the past two years.
A Dominant Force in Alternative Hospitality
Since its launch nine years ago, Gathern has established and led the alternative hospitality market in Saudi Arabia. The platform offers a unique experience for travelers to explore the Kingdom by staying in private residential units managed by local hosts. With over 72,000 listings, Gathern now represents approximately 15% of the total hotel and non-hotel accommodation supply in the Saudi market, boasting a 53% market share in the capital city of Riyadh.
Fueling the Local Economy and Vision 2030
Gathern has played a pivotal role in supporting the national economy and the goals of Saudi Vision 2030. The platform has injected over 2 billion SAR ($533 million) into the local economy, providing a sustainable income source for more than 33,000 Saudi hosts. By filling a crucial gap in tourist accommodation, the company is a key contributor to the Kingdom’s goals of attracting tourists and establishing itself as a global destination.
Investing in Technology and Global Expansion
The new capital will be used to fuel Gathern’s local and regional expansion, with a special focus on attracting international visitors and catering to the growing demand for long-term stays. The company also plans to invest heavily in its technology infrastructure, using artificial intelligence to enhance the user experience and further expand its diverse network of hosts and properties. This funding round is a pivotal moment, preparing Gathern for a new phase of growth and corporate transparency as it readies for a public listing.
Source: Jawlah
