erad secures $16 million pre-Series A to bridge SME credit gap in MENA
Saudi Arabia-based fintech erad has raised a $16 million pre-Series A funding round, backed by Y Combinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad provides Shariah-compliant, data-driven financing to SMEs in Saudi Arabia and the UAE, with funding access in as little as 48 hours.
The investment will support erad's expansion in Saudi Arabia and beyond, strengthen local hiring, and enhance its product offering, aligning with Saudi Vision 2030's goals to boost SME participation in the economy.
In 2022, erad closed a $2.4 million pre-seed round, backed by Nuwa Capital, VentureSouq, and Khwarizmi Ventures.
Press release:
erad, the Riyadh-headquartered alternative financing platform for SMEs, has successfully raised $16 million [SAR 60 million] in a Pre-Series A round to accelerate its growth and expand its operations in Saudi Arabia and beyond. The round was backed by leading global and regional funds, including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.
SMEs remain the backbone of the GCC economy, but access to capital remains a constant growth challenge with an estimated $250 billion credit gap. The funding will fuel erad's mission to offer fast and flexible financing solutions to underserved small and medium-sized businesses through its proprietary, data-driven financing platform. Focused on revenue-generating businesses, erad provides access to Shariah-compliant financing within 48 hours.
Salem Abu-Hammour, co-founder of erad, commented, 'While SMEs continue to power the GCC economy, entrepreneurs in retail, F&B, healthcare, and beyond struggle to secure the capital they need to scale up. Over 60% of our customers are first-time credit takers, and we are proud to be partners in their growth while fostering financial inclusion. Together with our investors, we are excited to play a role in the growth of these SMEs, which are having a significant economic impact in the region.'
To date, erad has supported hundreds of businesses with over SAR 100 million ($26.6 million) in funding in Saudi Arabia and the UAE, driving substantial growth for businesses in both markets. The demand for erad's solutions continues to surge, with over SAR 2 billion ($532 million) in funding requests on its platform since its launch, highlighting the critical need for alternative SME financing in the region.
The company services customers across retail, F&B, e-commerce, healthcare, and beyond, including well-recognised businesses such as Citron, Wixsana, and House of Pops.
erad plans to use the investment to deepen its market presence and expand its product offerings. With its entry into Saudi Arabia, the company will focus on doubling down on local hiring across multiple roles. The company remains committed to enhancing financial accessibility for SMEs, driving sustainable economic growth, and contributing to Saudi Vision 2030's objective of increasing SME participation in the national economy.
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