Erad, a financing platform based in Riyadh, has successfully raised $16 million (equivalent to SAR 60 million) in a Pre-Series A funding round. This investment will be used to accelerate the company’s growth and expand its operations in Saudi Arabia, as well as other regional markets. The funding round was supported by a number of prominent global and regional investors including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.

The platform specifically targets small and medium-sized enterprises (SMEs), which are essential to the GCC economy but often face challenges in accessing capital. There is an estimated $250 billion credit gap for these businesses. With this funding, Erad aims to provide fast and flexible Shariah-compliant financing solutions to underserved SMEs through its proprietary data-driven financing platform. The company can approve financing applications within 48 hours, focusing particularly on revenue-generating businesses.

Salem Abu-Hammour, Co-founder of Erad, highlighted the issue, stating that while SMEs are crucial to the economy, many entrepreneurs in sectors such as retail, food and beverage, and healthcare struggle to secure necessary capital. Over 60% of Erad’s customers are first-time credit applicants, and the company is proud to support their growth while promoting financial inclusion. Since its inception, Erad has provided over SAR 100 million ($26.6 million) in funding to hundreds of businesses in Saudi Arabia and the UAE.

Demand for Erad’s services continues to grow, with more than SAR 2 billion ($532 million) in funding requests received since the platform’s launch. This indicates a significant need for alternative financing options for SMEs in the region. Erad’s customer base includes well-known businesses such as Citron, Wixsana, and House of Pops, covering various sectors including retail, healthcare, and e-commerce.

With the new investment, Erad plans to strengthen its market presence and enhance its product offerings. The company is committed to local hiring as it expands its operations in Saudi Arabia, aiming to improve financial accessibility for SMEs and contribute to the goals of Saudi Vision 2030, which seeks to increase SME participation in the national economy.

Founded in 2022, Erad was established by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said. The platform focuses on providing Shariah-compliant working capital solutions to SMEs, leveraging technology and data for fast and flexible financing in both Saudi Arabia and the UAE.

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