Indian venture debt firm Stride Ventures has announced a significant expansion into the Middle East, with plans to deploy $200 million in Saudi Arabia over the next two years. The move is part of a broader strategy to invest $500 million across the Gulf region over four years, capitalizing on the rising demand for alternative financing sources for startups and growth-stage companies.
First Investment In Saudi Fintech Erad
Stride Ventures has already marked its entry into the region by leading a $33 million funding round for the Saudi fintech platform, erad. This investment represents the firm’s first fintech deal in the Middle East and serves as the launchpad for its broader investment activities in the Kingdom. Founded in 2022, erad provides financing solutions to small and medium-sized enterprises (SMEs) and plans to deploy over $100 million in the coming year to support their growth across Saudi Arabia and the UAE.
Capitalizing On The Rise Of Private Credit
The firm’s strategic entry into Saudi Arabia aligns with the Kingdom’s evolving financial landscape, where private credit is rapidly gaining traction. As government entities, corporations, and startups increasingly seek diverse funding sources beyond traditional banking channels, specialized debt providers like Stride are finding significant opportunities. Stride Ventures aims to lend to a diverse portfolio of Saudi companies across various sizes and industries, contributing to the maturation of the local venture ecosystem.
Broader Gulf Expansion Plans
Beyond its substantial commitment to Saudi Arabia, Stride Ventures’ regional strategy includes deploying another $50 million into the United Arab Emirates, targeting its growing private credit market. In an interview with Bloomberg, Fariha Javed, a partner at Stride Ventures, confirmed the firm’s ambition to invest $500 million in the region over the next four years and revealed that it is already in talks for another deal with a construction technology company.
About Stride Ventures
Stride Ventures is a leading venture debt firm based in India that provides alternative financing to growth-stage startups. The firm partners with innovative businesses to offer customized debt solutions that complement equity funding, supporting them through their expansion and scaling journey.
About Erad
Erad is a financial technology company founded in Saudi Arabia in 2022. The platform is focused on providing non-dilutive financing solutions to small and medium-sized enterprises (SMEs) across the MENA region, enabling them to scale their operations and fuel their growth.
Source: Waya
