Riyadh-based fintech platform erad, a leading provider of alternative financing solutions for SMEs, has successfully raised $33 million in debt financing, led by Stride Ventures, to strengthen its operations in Saudi Arabia and expand across the GCC.
The round, announced during Money 20/20 in Riyadh, will enable erad to scale its footprint in Saudi Arabia and the UAE, while expanding its product offerings to meet the growing demand from SMEs in diverse sectors, including retail, F&B, healthcare, and e-commerce.
Salem Abu-Hammour, Co-founder of erad, commented: “This investment follows a strong period of 5x growth (YoY), as we double down on our expansion in Saudi Arabia. Access to capital remains one of the primary challenges for SMEs across the region. 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.”
Since its founding in 2022 by Salem Abu-Hammour, Fares Yaghmour, Abdulmalik Al-Muheini, and Yousif Saeed, erad has provided more than $50 million in Shariah-compliant financing to SMEs across the region. Its platform leverages proprietary data modelling to assess risks and deliver financing approvals in just 48 hours, making it one of the fastest in the GCC.
Fariha Ansari Javed, Partner at Stride Ventures, stated: “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. Through our partnership with erad, we are leveraging our expertise to provide startups and SMEs across the region with innovative, alternative financing solutions that align perfectly with their growth ambitions.”
This strategic investment also reinforces erad’s mission to narrow the region’s $250 billion SME credit gap by enabling accessible, flexible, and Shariah-compliant growth financing for businesses across the GCC.
