Access to capital for SMEs in the GCC region is challenging, with research from Deloitte revealing that there is a $250billion credit gap in the region. To help these firms grow, erad, the alternative financing platform for SMEs, has completed a pre-series A funding round and expanded its operations in Saudi Arabia.
The SAR 60million ($16million) raised will fuel erad’s mission to offer fast and flexible financing solutions to underserved small and medium-sized businesses through its proprietary, data-driven financing platform. Focused on revenue-generating businesses, erad provides access to Shariah-compliant financing within 48 hours.
To date, erad has supported hundreds of businesses with over SAR 100million ($26.6million) in funding in Saudi Arabia and the UAE, driving substantial growth for businesses in both markets. The demand for erad’s solutions continues to surge, with over SAR 2billion ($532million) in funding requests on its platform since its launch, highlighting the critical need for alternative SME financing in the region.
The company services customers across retail, F&B, e-commerce, healthcare and beyond including well-recognised businesses such as Citron, Wixsana, and House of Pops.
erad plans to use the investment to deepen its market presence and expand its product offerings. With its entry into Saudi Arabia, the company will focus on doubling down on local hiring across multiple roles. The company remains committed to enhancing financial accessibility for SMEs, driving sustainable economic growth, and contributing to Saudi Vision 2030’s objective of increasing SME participation in the national economy.
Salem Abu-Hammour, co-founder of erad, commented: “While SMEs continue to power the GCC economy, entrepreneurs in retail, F&B, healthcare, and beyond struggle to secure the capital they need to scale up. Over 60 per cent 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.”
Some of the key investors in the funding round include:
- YCombinator
- Nuwa Capital
- Khwarizmi Ventures
- Aljazira Capital
- VentureSouq
- Oraseya Capital
- Joa Capital
