erad, which offers Middle East-focused alternative financing platform for businesses, has raised $2.4m in funding.
UAE-based Nuwa Capital and VentureSouq, and Saudi Arabia-based Khwarizmi Ventures led the pre-seed round. Other support came from prominent regional angel investors.
This capital will enable erad enhance its platform and bolster its expansion across the region. The Shariah compliant platform provides businesses with offers within 48 hours, as well as providing them with actionable insights on how to grow faster.
Its data-driven approach evaluates the marketing, sales and accounting activity of online businesses.
Saudi Arabia-headquartered erad offers non-dilutive funding, with flexible repayment and fast approval.
erad co-founder and CEO Salem Abu-Hammour said, “erad was created to provide online businesses with an alternative solution to bank loans or equity investment, and in turn support the growth of the Middle East’s digital economy.
“We saw that there was an emerging online segment in the region, particularly in the e-commerce space, that needed a tailored financial solution to cover user acquisition and inventory costs but didn’t have a financing source that fit them. What sets us apart is that we deep-dive into relevant data to the business, and don’t stop at the company’s assets and financial position.”
Earlier in the year, fellow Saudi Arabian FinTech company Funding Souq raised $2.5m in its seed round. The capital was backed by a selection of angel investors.
Founded in 2020, Funding Souq connects investors with established SMEs that need to borrow between $20,000 and $150,000.
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