Riyadh-based fintech platform erad has successfully raised $33 million in a debt financing round. The investment was led by India’s Stride Ventures, marking its first significant investment in Saudi Arabia, with participation from other investors. The deal was finalized during the Money20/20 conference in Riyadh, signaling strong investor confidence in the region’s growing SME financing sector.
Fueling Regional Expansion and SME Growth
The new capital infusion is earmarked to accelerate erad’s expansion across Saudi Arabia and the UAE. The funds will be instrumental in scaling its Shariah-compliant financing platform and meeting the burgeoning demand from small and medium-sized enterprises. The company targets a diverse range of sectors, including retail, food and beverage, healthcare, and e-commerce, which form the backbone of the regional economy. This investment follows a period of significant 5x year-over-year growth for the fintech startup.
Addressing the SME Credit Gap
Since its launch, erad has been on a mission to address the region’s estimated $250 billion SME credit gap. The company provides fast, flexible, and Shariah-compliant financing solutions, making growth capital more accessible for businesses across the GCC. By leveraging a proprietary data-driven model for risk assessment, erad can review applications and provide financing approval within 48 hours, one of the fastest turnaround times in the market. To date, the platform has provided over $50 million in funding and has received financing requests totaling more than $532 million from prominent regional brands.
A Strategic Partnership
The investment from Stride Ventures represents a strategic move for both parties. Salem Abu-Hammour, Co-founder of erad, noted the importance of the partnership, stating, “We share a common vision with Stride Ventures, and as their first regional fintech platform, we look forward to delivering flexible financing solutions at greater scale.”
Fariha Ansari Javed, Partner at Stride Ventures, highlighted the untapped potential of debt financing in the region. “Debt remains an untapped and powerful asset class in the GCC, offering immense potential to fuel growth for ambitious businesses without the need to dilute equity,” she commented. “This strategic investment in Saudi Arabia not only underscores our strong commitment to the GCC but also advances erad’s transformative vision of revolutionising capital access for the next generation of trailblazing enterprises.”
About erad
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad is an alternative financing platform headquartered in Riyadh. The company provides Shariah-compliant, data-driven financing to SMEs in Saudi Arabia and the UAE. Backed by prominent investors including Y Combinator and Nuwa Capital from a previous $16 million pre-Series A round, erad is dedicated to closing the SME credit gap by offering fast and accessible funding solutions.
Source: Wamda
