Erad, the Riyadh-based FinTech specialising in alternative financing for small and medium-sized enterprises, has closed a fresh debt financing round to strengthen its regional expansion.
According to Wamda, the company secured $33m in debt funding, with the round led by Stride Ventures. The venture firm, which recently doubled its team size in the Gulf, also achieved the first close of its ADGM Fund V. Additional investors also took part in the raise, which was finalised during the Money 20/20 conference in Riyadh.
Erad provides Shariah-compliant financing solutions for SMEs across the Gulf, using proprietary data modelling to streamline risk assessment and deliver approvals in as little as 48 hours. The platform has positioned itself as a growth partner for businesses operating in sectors such as retail, food and beverage, healthcare and e-commerce.
The fresh capital will be directed towards scaling Erad’s presence in Saudi Arabia and the UAE, while also meeting rising demand for SME financing across the wider GCC.
The company said the funding is central to its mission of narrowing the region’s estimated $250bn SME credit gap by offering faster and more flexible financing options. Since launching, Erad has deployed over $50m in financing to regional SMEs, with demand exceeding $532m in requests from recognised Saudi and Emirati brands.
Erad co-founder Salem Abu-Hammour 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.”
Stride Ventures partner Fariha Ansari Javed added: “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 revolutionising capital access for the next generation of trailblazing enterprises.”
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