Erad Secures $22 Mn Series A to Expand SME Financing Across the GCC

Saudi Arabia-based fintech erad has raised $22 million in Series A funding to expand its SME financing business across the GCC. The round was led by MEVP with participation from new investors including 500 Global, Saudi Venture Capital (SVC), S60 Ventures, ANB Capital, Conjunction Capital and Araya Ventures.

Existing investors, including Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital and Joa Capital, also participated in the round.

What is Erad?

Founded in 2022, erad is a Riyadh-based alternative financing platform that provides working capital solutions to small and medium-sized businesses in Saudi Arabia and the UAE.

The company offers Shariah-compliant financing of up to SAR 10 million. Its platform uses data and AI-driven underwriting to assess businesses, monitor cash flows and support financing decisions.

Erad said businesses can receive financing approval in an average of 48 hours, helping SMEs access working capital more quickly.

Erad’s Growth and SME Financing

The latest funding comes after strong growth for the fintech in Saudi Arabia. Erad has recorded 8x year-over-year growth in the country.

The company has deployed more than SAR 500 million ($133 million) in cumulative financing to SMEs. At the same time, it has received more than SAR 4 billion ($1 billion) in financing requests from businesses.

Erad has also expanded beyond its original target sectors and now serves businesses across logistics, medical equipment, wholesale distribution, manufacturing, retail and healthcare.

How Will Erad Use the New Funding?

Erad will use the $22 million Series A funding to develop new financing products and expand further across the GCC.

The company plans to focus on capital-intensive sectors such as industrial, logistics and manufacturing, where businesses often require significant working capital to support expansion.

The fintech will also strengthen its technology and commercial teams through strategic hiring across the region.

How Does Erad’s Financing Platform Work?

Erad uses proprietary AI models and data driven underwriting to assess businesses and manage financing risk.

The platform tracks business cash flows and financing requirements, allowing the company to support higher financing volumes and larger ticket sizes.

Erad provides financing of up to SAR 10 million through Shariah-compliant products. The company said its financing has helped businesses fund areas such as fleet expansion, inventory, new locations and larger contracts.

According to the company, 85% of its clients continue to grow with erad and expand their financing within the first year.

Erad’s Previous Funding

In November 2025, erad secured a $125 million scalable financing facility led by Jefferies.

The latest Series A round provides additional equity capital as the company expands its financing products and geographic reach across the GCC.

About Erad

Erad was founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini and Youssef Said.

Headquartered in Riyadh, the company provides Shariah-compliant working capital financing to SMEs in Saudi Arabia and the UAE.

Its platform uses technology and data-driven underwriting to provide financing across sectors including healthcare, food and beverage, logistics, manufacturing, and wholesale distribution.

With the new funding, erad plans to expand its product offering, enter more GCC markets, and strengthen its technology and commercial operations.

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