- erad secures USD 125M credit facility to expand embedded finance solutions, targeting SMEs across Saudi Arabia and the broader GCC region.
- The Riyadh-based platform aims to offer fast, flexible, Shariah-compliant financing through CMA-licensed direct financing funds.
- Embedded finance at point of sale already live with strategic partners in healthcare and F&B across Saudi Arabia and UAE.
erad
Riyadh-based alternative financing platform for SMEs, erad, secured USD 125 million in a credit facility deal. This in partnership with Jefferies alongside co-investment from Channel Capital to accelerate embedded finance solutions across the GCC.
This deal comes after erad’s recent USD 33 million debt financing round led by Stride Ventures.
“By embedding financing directly into existing supplier and platform relationships, we’re making working capital as accessible as a payment transaction. The support from the regulators, Jefferies and Channel Capital, demonstrates the strategic importance of alternative finance in supporting the Kingdom’s goal of SME growth,” said Salem Abu-Hammour, Co-founder of erad.
SME Financing
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad is a financing platform. It provides fast, flexible, and Shariah-compliant financing solutions to SMEs. .
Looking forward to the scalable funding facility, it aims to significantly expand its capacity. With this, it aims to meet growing demand from SMEs in Saudi Arabia and the rest of the GCC. Furthemore, the fund it will allocate for Saudi SMEs will be deployed through CMA-licensed direct financing funds managed by Erad Partners Capital.
Following this transaction, it aims to expand into multiple sectors and products, including embedded finance products. Moreover, it seeks to enable suppliers and business platforms to offer integrated financing at the point of sale. The model is already live with several of its partners, including suppliers of healthcare and F&B products in Saudi Arabia and the UAE.
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