Riyadh-headquartered fintech startup Erad has successfully raised $16 million (SAR 60 million) in a Pre-Series A round to accelerate its operations and scale across Saudi Arabia and the UAE.
🌍 Backed by Leading Global & Regional Investors
The round attracted a stellar lineup of investors including:
- Y Combinator
- Nuwa Capital
- Khwarizmi Ventures
- Aljazira Capital
- VentureSouq
- Oraseya Capital
- Joa Capital
This marks a significant step forward from Erad’s $2.4 million pre-seed funding in 2022, also led by Nuwa Capital, VentureSouq, and Khwarizmi Ventures.
📝 Note: It’s currently unclear if any debt instruments were part of the round.
💼 What Erad Does
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, Erad is redefining SME financing in the region through a data-driven platform that provides:
- Revenue-based financing
- Fixed-term capital solutions
The startup boasts:
- Fast approval times – financing decisions in 48 hours
- Flexible ticket sizes – from $40,000 to $2.7 million (AED 150K to AED 10M)
🏢 Sector Focus
Erad primarily serves SMEs across sectors such as:
- Retail
- E-commerce
- Food & Beverage (F&B)
- Healthcare
- Other high-growth verticals
🚀 What’s Next?
With the new capital, Erad aims to:
- Deepen its footprint in Saudi Arabia
- Expand operations into the United Arab Emirates
- Enhance its tech platform for more robust data analysis and risk assessment
Conclusion:
Erad’s latest funding round highlights growing investor confidence in alternative SME financing models in the MENA region. As Erad scales, it stands to become a vital engine of growth for underserved businesses in Saudi Arabia and beyond.
🔗Source: Click Here
