• erad secured USD 16M in a Pre-Series A round led by YCombinator, Nuwa Capital, and others
• The funding will support Erad’s expansion in Saudi Arabia and help scale its data-driven SME financing platform.
• The startup offers fast, Shariah-compliant capital to underserved SMEs, addressing a USD 250B credit gap in the GCC region.

erad

What happened?  Erad raised USD 16 million (SAR 60M) in a Pre-Series A funding round. The round was led by YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.

What’s next? With the funding, the startup aims to accelerate its growth and expand its operations in Saudi Arabia and beyond.  It also aims to reinforce its mission to offer fast and flexible financing solutions to underserved SMEs  through its data-driven financing platform.

erad aims to use the investment to deepen its market presence and expand its product offerings. With its entry into Saudi Arabia, it aims to focus on hiring local talent.

SMEs

Why does this matter? The startup offers an alternative financing platform for SMEs which represent a significant pillar of the GCC economy.The startup aims to tackle the SME growth challenge with an estimated USD 250 billion credit gap. 

The company aims to enhance financial accessibility for SMEs, driving sustainable economic growth, and contributing to Saudi’s Vision 2030. 

Salem Abu-Hammour, Co-founder of erad, said “While SMEs continue to power the GCC economy, entrepreneurs in retail, F&B, healthcare, and beyond struggle to secure the capital they need to scale up. Over 60% of our customers are first-time credit takers and we are proud to be partners in their growth while fostering financial inclusion.”  

Who are they?  erad is a financing platform that helps SMEs access Shariah-compliant working capital solutions. It was founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said. 

Using a data-driven approach, erad leverages technology to offer financing to businesses in Saudi Arabia and the UAE. This is across different sectors such as retail, healthcare, F&B, and more.