erad, the alternative growth financing platform for online businesses across the Middle East, raised $2.4 million in a pre-seed round. The round was backed by UAE-based Nuwa Capital and VentureSouq, as well as Saudi’s venture capital firm, Khwarizmi Ventures, with additional private investment from prominent regional angel investors.
erad’s is a secure, data-driven platform that evaluates the marketing, sales, and accounting activity of promising online businesses. The applicant’s existing track record and potential capability to scale determine its eligibility for funding. Funding offers are made within 48 hours, after which capital is deployed instantly. To date, it has onboarded more than 25 startups onto its platform.
“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 data that is relevant to the business, and don’t stop at the company’s assets and financial position,” Salem Abu-Hammour, Co-Founder & CEO of erad, said.
The funds raised will be used to enhance the platform and drive the company’s expansion into different markets across the region.
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