erad, the Riyadh-headquartered alternative financing platform for SMEs, has successfully raised $16 million in a Pre-Series A funding round to accelerate its growth and expand operations in Saudi Arabia and beyond.
The round was led by global and regional investors including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.
Founded in 2022, erad provides Shariah-compliant, data-driven financing solutions to small and medium-sized businesses, with a focus on fast and flexible revenue-based or fixed-term financing. The platform evaluates risk and approves funding requests within 48 hours using proprietary technology.
To date, erad has facilitated over SAR 100 million ($26.6 million) in funding for businesses across Saudi Arabia and the UAE, supporting growth for well-known regional brands such as Citron, Wixsana, and House of Pops.
The demand for erad’s services continues to grow, with over SAR 2 billion ($532 million) in funding requests since launch, underscoring the critical need for SME financing alternatives in the MENA region.
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 significant economic impact in the region.”
The new investment will support erad’s entry into Saudi Arabia, expansion of its local workforce, and continued innovation in SME finance, in line with Saudi Vision 2030’s goals of strengthening SME participation in the national economy.
