Erad has raised $16 million in a Pre-Series A round led by Y Combinator, Nuwa Capital, and other investors. The funding will fuel the startup’s expansion in Saudi Arabia and support the growth of its data-driven platform that provides fast, Shariah-compliant financing to underserved SMEs. Erad aims to help bridge the $250 billion SME credit gap across the GCC region.
Erad
What happened?
Erad secured $16 million (SAR 60 million) in a Pre-Series A funding round led by Y Combinator, with participation from Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.
What’s next?
The funding will help Erad accelerate its growth, strengthen its presence in Saudi Arabia, and expand across the Gulf Cooperation Council (GCC). The company plans to enhance its data-driven platform that delivers fast, Shariah-compliant financing to underserved SMEs. As part of its expansion, Erad will also focus on hiring local talent and broadening its product offerings.
SME
Why does this matter?
SME form a vital part of the GCC economy, yet many face significant barriers to accessing capital, leaving an estimated $250 billion credit gap. Erad addresses this challenge by providing an alternative, Shariah-compliant financing platform designed to help these businesses grow. By improving financial accessibility, the company supports sustainable economic development and aligns with Saudi Arabia’s Vision 2030 goals.
Salem Abu-Hammour, Co-founder of Erad, said:
“While SMEs continue to power the GCC economy, entrepreneurs in sectors like retail, F&B, and healthcare struggle to access the capital they need to scale. Over 60% of our customers are first-time credit takers, and we’re proud to support their growth and champion financial inclusion.”
Who are they?
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, Erad is a financing platform that provides Shariah-compliant working capital to small and medium-sized enterprises (SMEs). Using a tech-enabled, data-driven approach, Erad serves businesses across Saudi Arabia and the UAE in sectors such as retail, healthcare, and F&
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