Erad Raises $16 Million to Expand SME Financing in Saudi Arabia

Riyadh-based fintech platform Erad has raised $16 million in a Pre-Series A round, as it looks to scale its Shariah-compliant financing solutions for small and medium-sized enterprises (SMEs) across Saudi Arabia and the wider Gulf region.

The funding round drew support from global and regional investors including Y Combinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.

Founded in 2022, erad focuses on revenue-generating businesses in sectors such as retail, F&B, e-commerce, and healthcare. Its platform leverages real-time business data from payment processors, e-commerce platforms and bank accounts to offer fast, non-dilutive funding — with approvals granted in as little as 48 hours.

Since launch, erad has provided over $26.6 million in funding to hundreds of businesses in Saudi Arabia and the UAE. Notable clients include Citron, Wixsana, and House of Pops. Demand for its services continues to surge, with more than $532 million in funding requests processed so far.

“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,” Salem Abu-Hammour, Co-founder of erad, said. “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 significant economic impact in the region.”

The newly secured capital will support erad’s plans to deepen its presence in Saudi Arabia, expand product offerings, and increase local hiring. With growing demand for alternative financing solutions, erad aims to play a role in closing the GCC’s estimated $250 billion SME credit gap and driving forward the next phase of regional economic growth.