Latest news with #NuwaCapital
Wamda
30-04-2025
- Business
- Wamda
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.
Arabian Business
30-04-2025
- Business
- Arabian Business
GCC sees massive surge in high-value startup funding deals in early months of 2025
High-value startup funding in the GCC region is seeing a major rebound, with some of the leading ventures in the region mopping up over a billion-dollar investment combinedly in the first quarter of 2025. The surge in investments, which include both equity and debt funding, comes despite many other regions, including the West and India, still seeing a slowdown in private and venture capital funding. Importantly, the momentum seems to be continuing into the second quarter as well, with erad, a Riyadh-headquartered alternative financing platform for SMEs, striking a $16 million equity investment deal in a pre-Series A round. The company is expected to announce the deal, involving leading global and regional funds, including YCombinator, Nuwa Capital, Khwarizmi Ventures and Aljazira Capital, on Wednesday, April 30. The $160 million Series E round funding by leading BNPL (Buy Now, Pay Later) player Tabby, the $69 million Series A round funding by Flow48, a logistics sector startup, the $28 million each funding by an e-commerce platform, and Merit Incentives, a Dubai-based globally operating engagement technology venture, in their Series B rounds, and the $25 billion funding by Calo, a leading foodtech startup, in a Series B round are among the high-profile investment deals struck by startup ventures in the region. The Riyadh-headquartered Lendo, a fintech venture, secured a massive $690 million in a debt financing round in January this year. The financing facility, extended by J.P. Morgan, was supported by Fintech Saudi, a Saudi initiative. Sector experts said the rising trend of high-value startup funding in the region, especially in the UAE and Saudi Arabia, is expected to continue in the coming quarters of this year. The relatively stable and growing economic and market conditions in the two countries, along with investor and industry-friendly policies being pursued by the respective governments, are driving global investor interests in the region, they said. GCC startups gain momentum Industry experts said the surge in high-value PE and VC investments is due to the strong interest in fintech, foodtech, and other growth sectors within the GCC startup ecosystem. Among the sectors, fintech seems to be the top preferred sector for investors, they said, citing the latest example of erad, the Saudi-based alternative financing platform, striking $16 million investments with a clutch of global and regional investors. The pre-Series A round of erad was backed by leading global and regional funds, including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital. The fresh funding is to be used by the Saudi fintech to fuel its mission to offer fast and flexible financing solutions to underserved small and medium-sized businesses through its proprietary, data-driven financing platform. Salem Abu-Hammour, Co-founder of erad, said 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 per cent of our customers are first-time credit takers and we are proud to be partners in their growth, while fostering financial inclusion,' he said. Sector experts said the huge credit gap in the SME sector in the GCC – estimated to the tune of $250 billion – seems to be the major attraction for investors to fund promising startups in the region as the massive capital gap offers great growth potentials for them. Q1 investment momentum Among the high-profile investment deals concluded in the initial months of 2025 are Tabby's $160 million Series E round in mid-February. The latest funding round also significantly boosted the company's valuation, doubling it to $3.3 billion. The round was led by Blue Pool Capital and Hassana Investment Company. Leading logistics sector startup Flow48 also struck a new investment deal in February this year, securing $69 million in a Series A round. The fintech startup providing financing to SMEs secured the funding from a clutch of investors led by Breega and included PE and VC firms such as 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and Plus VC. February seemed to be a favourable month for startups in the region, with three ventures in different sectors – Merit Incentives and The Game Company – striking deals to raise significant investments. an e-commerce platform with major operations in the UAE and the wider GCC and MENA region, struck deals with a slew of investment firms such as Rua Growth Fund, Jordan Capital & Investment Fund and Foursan Group to raise $28 million in a Series B round. The Dubai-based, globally operating engagement technology company Merit Incentives also struck deals with a clutch of leading investment firms led by Alistithmar Capital and Tech Invest Com to raise $28 million in a Series B round in the month. Other investors in the venture included Endeavor Catalyst, Salica Investments, and Stride Ventures. Dubai-based The Game Company also reportedly raised $10 million to launch a cloud gaming platform in February this year.
Wamda
28-01-2025
- Business
- Wamda
Silkhaus to fuel KSA expansion with seven-figure growth round
UAE-based proptech Silkhaus has closed a seven-figure growth round, led by Nuwa Capital and Oraseya Capital, with participation from Impulse International, Yuj Ventures, Nordstar, and other family offices. Founded in 2021 by Aahan Bhojani, Silkhaus offers a marketplace for short-term rentals across the UAE. The new funding will fuel Silkhaus's expansion in Saudi Arabia, where it is now open for bookings for guests from around the world. A year ago, Silkhaus closed multi-million-dollar pre-Series A financing from San Francisco-headquartered Partners for Growth (PFG). Press release: Silkhaus ( a leading proptech startup revolutionising the short-term rental market in the Middle East and Asia, has announced the closing of a seven-figure growth round led by Nuwa Capital and Oraseya Capital, with participation from Impulse International, Yuj Ventures, Nordstar, and prominent family offices. The new funding will fuel Silkhaus's expansion in the Kingdom of Saudi Arabia (KSA), where it is now open for bookings for guests from around the world. Silkhaus's expansion into KSA includes the launch of its booking platform under the leadership of Sabine El Najjar, KSA Managing Director & VP Commercial, and Peter May, VP Operations, positioning the company as a premier choice for business and leisure travellers seeking high-quality accommodations. A multi-billion opportunity in KSA and the UAE The KSA and UAE short-term rental market together exceeds $2.5 bn in size, growing 46% per year with increasing demand from guests, while landlords look to monetise the growing supply of available apartments in both countries. The company now operates properties valued at over $200 million annually across Dubai, Abu Dhabi, and Riyadh, spanning the luxury and mid-market segments. The company will focus on providing guests in KSA with world-class and seamless booking options through its website while leveraging technology to optimise property returns for landlords. In Riyadh, neighbourhoods such as Al Sahafa, Al Nada, and Qurtuba are seeing strong demand, particularly for one-bedroom apartments, which maintain the highest occupancy rates. Aahan Bhojani, Founder & CEO, Silkhaus, said: 'This growth round is a testament to Silkhaus' commitment to redefining the short-term rental industry. With the support of our investors and team, we are excited to scale our operations in the UAE and KSA, offering innovative solutions to property owners and premium experiences to guests. The short-term rental economy of the GCC is experiencing a significant growth surge, and we are proud to be leading this growth.' Double-digit growth in booking value driven by guests from UK, USA & Russia Gross booking values continue to grow by more than 100% year-on-year since launch, with guests from over 120 countries choosing Silkhaus properties for their stays. According to the company's data, the United Kingdom, USA and Russia are the top international source markets for guests at Silkhaus properties. Regional demand is also a strong driver, with one-third of bookings coming from the GCC, led by the UAE and KSA. In Silkhaus' Dubai portfolio, residential neighbourhoods like Dubai Production City, Al Barsha and Dubai Creek Harbor proved themselves among the most popular, with an average yearly occupancy of over 90%, while Emaar Beachfront continues to attract high-end demand, with average nightly spends up to 50% higher than the city average. In Abu Dhabi, short-term rental nightly rates are on par with Dubai, with Yas Island, Al Raha, and Saadiyat Island being the highest yield locations. Management and board appointments to lead the next stage of growth Silkhaus has also strengthened its management team and board of directors. Ankit Shah, CFO of Silkhaus, has been elevated to Co-Founder and Board Member, and Abdul Wahab Al Halabi, Managing Director at Embassy Capital, has joined as an independent director. Additionally, Nitin Reen, Partner at Nuwa Capital, and Hassan Alfarsi from Oraseya Capital have also joined the board. New senior leadership appointments will be announced in the coming months. Nitin Reen, Partner at Nuwa Capital, commented: 'Aahan and his team have a bold vision for the future of short-term rentals in the Middle East, supported by an outstanding team that's fully equipped to bring it to life. Their early achievements in the UAE serve as clear validation of the model's potential and bolster our confidence in scaling it to additional cities across KSA. We are proud to support Silkhaus as they continue to grow and redefine how guests experience consistent, high-quality stays at their properties.' Hassan Alfarsi, Board Member at Oraseya Capital, commented: 'Silkhaus stands out as a leader in the short-term rental market, offering incredible value to property owners and travellers alike. We are excited to support Silkhaus's vision as it expands across the Gulf, tapping burgeoning tourism, corporate housing requirements and economic growth. This supports the realisation of the vision of the region's inspiring leaders.' Founded in 2021, Silkhaus has rapidly grown to become the leading short-term rental operator in the GCC. The company's technology platform empowers property owners to monetise and manage their assets efficiently, delivering returns 20–40% higher than traditional long-term rental models.
