Erad, an alternative financing platform for SMEs based in Riyadh, has raised $33 million in debt financing to grow its business in Saudi Arabia and across the GCC.
The round was led by Stride Ventures, which recently doubled its team in the region and closed the first stage of its ADGM Fund V, with support from other investors.
This new funding helps Erad continue its mission to close the $250 billion SME credit gap in the region by offering fast, flexible, and Shariah-compliant financing, making growth funding easier for GCC businesses.
The money, raised at Money 20/20 in Riyadh, will be used to expand Erad’s operations in Saudi Arabia and the UAE, grow its team, and meet increasing demand from SMEs in sectors like retail, F&B, healthcare, and e-commerce.
Salem Abu-Hammour, Co-founder of erad, said, “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 launch, Erad has provided more than $50 million in funding to SMEs in the region.
Its Shariah-compliant platform uses proprietary data models to assess risk, allowing it to review applications and approve financing in just 48 hours—one of the fastest in the region.
Fariha Ansari Javed, Partner at Stride Ventures, added: “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 in Saudi Arabia not only underscores our strong commitment to the GCC but also advances erad’s transformative vision of revolutionising capital access for the next generation of trailblazing enterprises.
Since its founding, Erad has received funding requests totaling over $532 million from prominent brands in Saudi Arabia and the UAE.
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