erad Secures US$16 million to Expand SME Financing Platform
erad, the Riyadh-headquartered alternative financing platform for SMEs, has successfully raised US$16 million [SAR 60 million] in a Pre-Series A round to accelerate its growth and expand operations in Saudi Arabia and beyond. The round was backed by leading global and regional funds including Y Combinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.
SMEs remain the backbone of the GCC economy, yet access to capital continues to present a significant growth challenge, with an estimated US$250 billion credit gap. This funding will support erad’s mission to offer fast and flexible financing solutions to underserved small and medium-sized businesses via its proprietary, data-driven financing platform. Focused on revenue-generating businesses, erad provides access to Shariah-compliant financing within 48 hours.
Salem Abu-Hammour, Co-founder of erad, commented: “While SMEs continue to power the GCC economy, entrepreneurs in retail, F&B, healthcare, and other sectors 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 a significant economic impact in the region.”
To date, erad has supported hundreds of businesses with over SAR 100 million (US$26.6 million) in funding across Saudi Arabia and the UAE, driving substantial growth in both markets. Demand for erad’s solutions continues to increase, with over SAR 2 billion (US$532 million) in funding requests received on its platform since launch — underlining the critical need for alternative SME financing options in the region.
The company services customers across Retail, F&B, e-Commerce, Healthcare and beyond, including well-recognised names such as Citron, Wixsana, and House of Pops.
erad plans to leverage this investment to strengthen its market presence and broaden its product offerings. With a focused entry into Saudi Arabia, the company will prioritise local hiring across multiple roles. erad remains committed to enhancing financial accessibility for SMEs, supporting sustainable economic growth, and contributing to Saudi Vision 2030’s goal of increasing SME participation in the national economy.
