Press release:
erad, the Riyadh-headquartered alternative financing platform for SMEs, today announced the close of a $22 million Series A funding round (SAR 78.75 million) led by MEVP, with participation from new investors SVC, 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, and Araya Ventures. Existing investors Khwarizmi, Nuwa Capital, Aljazira Capital, Oraseya, and Joa Capital also participated, reinforcing their continued conviction in erad's trajectory.
The raise comes on the back of 8x year-over-year growth for erad in Saudi Arabia, having deployed over SAR 500 million ($133 mn) in cumulative financing to SMEs, indicative of growing demand for alternative growth capital across the GCC. The company has received more than SAR 4bn ($1bn) in financing requests from SMEs to date, which underscores the scale of unmet demand for working capital across the region.
erad is currently seeing growth beyond its original target sectors to serve businesses across logistics, medical equipment, and wholesale distribution. The company’s data-driven underwriting enables it to track client cash flows, limit risk, and manage additional financing needs.
"SMEs represent approximately 50% of regional GDP and employ two-thirds of the workforce across the GCC, yet face a financing gap that limits their growth. This round marks a pivotal chapter for erad as our clients seek speed to capital and markets. We have proven that our model works and businesses across sectors are coming to us because we make financing fast, fair, and frictionless, said Salem Abu-Hammour, Co-founder of erad. “What excites me most is where we go from here, which is deeper into new sectors, into new products that did not exist before, and powering the businesses that are scaling across the region.”
Across the region, erad's financing has translated into real growth for the businesses it serves, funding everything from fleet expansion and inventory to new locations and larger contracts, without tying up the cash they need to operate. On average, clients are approved within 48 hours, and 85% continue to grow with erad, expanding their financing within the first year.
Jad EL Boustani, Partner at MEVP, said, "We're backing erad because they're addressing the GCC's $250 billion SME financing gap while building a sustainable, high-quality financing business. What gives us the most conviction is the team: Salem and the founding team have paired real domain expertise with disciplined execution, turning a clear market need into 8x year-over-year growth in Saudi and a 48-hour approval engine that scales. Their technology-first approach and rigorous underwriting balance growth ambition with risk discipline, which is exactly what the GCC's economic transformation needs. This round reinforces MEVP's commitment to Saudi Arabia and the wider GCC tech ecosystem.
The company currently offers multiple working capital products to serve businesses in various sectors. Its proprietary AI models enable the platform to process higher volumes and larger ticket sizes while managing risk. Financing from erad is available up to SAR 10 million and is fully Shariah-compliant, giving businesses flexible payment terms at the point of need.
Following its Series A, erad will double down on new financing products built to serve the demand it's seeing across the market. These offerings will be tailored to the needs of the sectors erad is expanding into; including industrial, logistics, and manufacturing; capital-intensive industries that are scaling rapidly across the GCC and beyond. erad will also grow its team across the region, with strategic hiring across technology and commercial functions.