Saudi Arabia-based fintech erad has raised $33 million in debt financing during the Money 20/20 Middle East conference in Riyadh, the company confirmed on Monday.
The round was led by India’s Stride Ventures with backing from additional investors. It is intended to support erad’s expansion in Saudi Arabia and the wider Gulf Cooperation Council (GCC) market.
The company said the new capital will be used to help close the region’s $250 billion SME credit gap by providing quick, flexible, and Shariah-compliant financing options. The funds will also allow erad to scale its operations to meet rising demand from SMEs across retail, food and beverage, 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.”
Fariha Ansari Javed, Partner at Stride Ventures, commented: “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 revolutionizing capital access for the next generation of trailblazing enterprises.”
Founded in 2022, erad has provided more than $50 million in financing to date and reported funding requests exceeding $532 million. Its platform, already active in Saudi Arabia and the UAE, offers Shariah-compliant, data-driven financing solutions with approvals available in as little as 48 hours.
