erad, a Riyadh-based alternative financing provider for small and medium-sized enterprises, has closed a $22m (SAR 78.75m) Series A round. It plans to use the capital to push into new sectors and products across the GCC.
MEVP led the investment. New backers SVC, 500 Global, S60 Ventures, ANB Capital, Conjunction Capital and Araya Ventures joined, along with returning investors Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital and Joa Capital, all of which increased their commitment to the business.
The deal follows a year in which erad’s Saudi operations grew eightfold. The firm has now provided more than SAR 500m ($133m) in total financing to SMEs. It has also received over SAR 4bn ($1bn) worth of funding applications, which points to a large shortfall in working capital availability across the region.
Although erad began with a narrower focus, it now supports companies in logistics, medical equipment and wholesale distribution. Its underwriting relies on data, which lets it monitor client cash flow, control exposure and respond when businesses need more funding.
Clients have used erad’s capital for fleet growth, stock purchases, new premises and bigger contracts, without draining the cash they need to run day to day. Approvals typically come through within 48 hours, and 85% of customers increase their financing with the company during their first year.
erad provides a range of working capital products for different industries. Its in-house AI models let it handle more applications and larger deals while keeping risk under control. Facilities go up to SAR 10m, are fully Shariah-compliant, and offer flexible repayment terms when businesses need them.
With the new funding, erad will build fresh financing products for capital-heavy industries such as industrial, logistics and manufacturing, which are expanding quickly in the GCC and beyond. It will also hire across the region, focusing on technology and commercial roles.
erad co-founder Salem Abu-Hammour said, “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.”
MEVP partner Jad EL Boustani 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.
“erad secures $22m Series A to power GCC SME financingTheir 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. “
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