FEMALE BASED START-UP GATHERN UPHEAVED $6 MILLION SERIES A LED BY STV - MENA startups, innovation, and tech news

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FEMALE BASED START-UP GATHERN UPHEAVED $6 MILLION SERIES A LED BY STV
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FEMALE BASED START-UP GATHERN UPHEAVED $6 MILLION SERIES A LED BY STV

Riyadh, (the capital city of Saudi Arabia) based vacation rental marketplace,Gathern, is a female-led start-up,founded in 2016 by Latifa Altamimi and Faisal Alanazi. Has become the first peer-to-peer programmeconsentedto have a license by the kingdom’s Ministry of Tourism.

ABOUT THE FEMALE-BASED START-UP:

The start-up has lately upheaved a $6 million Series A round, accompanied by STV with the engagement from existing shareholdersVision Ventures, 500 Start-ups, angel investorNaef Sultan AlAthel and ARG Limited. With the endorsement of the programme, the end-users can leasethe villas, apartments, farms, roomsand cruiser explicitly from an individual owner through its platform on a regular basis.

Saudi Arabia has opened up to international tourism in September 2019 and has since declared a number of megaprojects to fascinate visitors, including a $530 million fund to progress the key destinations across the realm. Riyadh aims to raise the benefaction of its tourism sector to its GDP from 3 percent to 10 percent, in a bid to modernize its economy and deviate from the dependency on oil.

OBJECTIVES OF THE GATHERN:

The female-led Saudi start-up will utilize the current funding to invest in enhancing its product and further intensifying its geographical impression within Saudi Arabia, where it is active in over 100 cities, including Riyadh, Jeddah, Dammam, Abha, Al-Baha, Taif, Al-Ula, and Umluj.

Latifa Altamimi, the co-founder and CEO at Gathern said that “Saudi Arabia has a renewed vision for its tourism sector, with both domestic and international tourism seeing significant support. With Gathern, we look to offer a different experience from the traditional travel experience, by providing unique tourist residences from actual residents. This allows anyone to explore the real culture and cities in Saudi Arabia”. If you become a host on our platform, you simply list your villa, apartment, farm, caravan, room, chalet, camp, or yacht, which allows you to earn significant additional income.”

Ahmad Alshammari, the partner at STV, said “We are incredibly excited to partner with Gathern – it is our first investment in the travel spaceand the largest ever investment in a female-led Saudi start-up. We believe that Latifa and the Gathern team have the right engine to tackle this fast-growing market with a fresh approach”.

Ahmad Alshammari, a partner at STV, said in a press statement that “We are incredibly excited to partner with Gathern– it is our first investment in the travel spaceand the largest ever investment in a female-led Saudi start-up”. She continued to state that “We believe that Latifa and the Gathern team have the right engine to tackle this fast-growing market with a fresh approach. They have proven themselves to be incredibly nimble and resilient during COVID-19, where they grew significantly despite the global challenges. We are excited to see what the future holds.”

CHALLENGE POSSESS ON FEMALE START-UPS:

As women in the contemporary era are doing way more and achieving great heights in contrast to their counterparts, irrespective of all they are also being challenged by the harsh extremities of life and work. The study which hasused both the quantitative and qualitative data has indicated while interviewing that, thirteen female entrepreneurs that have established their start-ups aremostly relied upon their business by families for funding or in many cases has self-funded their businesses. In addition to the above, some respondents mentioned that they funded their business with bank loans. The businesswomen had faced legal challenges such as denial of giving loans to start-up, legal challenges such as long duration of issuing permits and licensing and societal issues and challenges such as the risk of being harassed or mislead by investors or potential partner as well as technological or material issues confronted.

THE VISION FORWARD:

Gathern has the capacity to anchor over 1.2 million guests per month since its capacity to hold is gradually increasing over the month. The income of top hosts on the platform surpassed SAR60,000 ($16,000) per month.

Domestic and international tourism has been a focal point of Saudi Arabia’s Vision 2030. By 2030, the company’s main objective is to embrace 100 million international and domestic visitors, approximately three times the current population of the country.This would make Saudi Arabia one of the topmost tourist destinations globally among the top 5 countries. Qiddiya, a $2.6 billion project just outside of Riyadh, will be completed by 2023 and is expected to allure 17 million entertainment visitors, 12 million shopping visitors, and 2 million hospitality visitors by 2030 alone. 

Moreover, with the tourist visa being introduced in Saudi Arabia, the international tourism industry in Saudi Arabia is expected to blossom as well. While Hajj and Umrah already account for nearly 10 million international visitors to the Kingdom yearly, the number of international visitors is only expected to escalate. Market research firm Euromonitor International evaluated in March that inbound tourism disbursing in Saudi Arabia would reach $25.3 billion by 2025, recovering from the impact of novel pandemic coronavirus.

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