• Stride Ventures plans to deploy USD 200M in Saudi Arabia within two years, targeting diverse companies amid the kingdom’s financing shift.
• The firm’s USD 33M investment in Saudi fintech Erad marks its first Middle East fintech deal and kickstarts regional expansion.
• Stride aims to invest USD 500M across the Gulf over four years, including $50M in the UAE’s growing private credit market.

Stride Ventures

India’s venture debt firm, Stride Ventures, plans to deploy USD 200 million into Saudi Arabia over the next two years. This is in an effort to capitalize on the Kingdom;s push for new sources of financing.

This comes after Stride Ventures led a USD 33 million funding round into Saudi fintech erad. This was its first fintech investment in the Middle East and the start of its investment push in Saudi Arabia.

Founded in 2022, Erad plans to deploy more than USD 100 million for SMEs in the coming year. Furthermore,  its backing of a funding round in Erad will support its company’s expansion across Saudi Arabia and the UAE.

Investment

The firm aims to lend a diverse variety of Saudi companies in terms of both size and industry. It also intends to invest another USD 50 million into the UAE after recently closing its first Gulf-focused fund. 

In an interview with Bloomberg,  Fariha Javed, partner at Stride Ventures, disclosed that the firm intends to deploy USD 500 million into the region over the next four years. Javed also states that the firm is in talks with a construction technology company on another deal.

This comes amid venture investment and private credit growth in the kingdom. This is as entities from the state to companies and banks seek alternative sources of funding. 

Bottom line: Private credit is gaining traction in Saudi Arabia as global players explore opportunities aligned with the kingdom’s evolving financial landscape. Stride’s regional entry highlights the Gulf’s growing role in alternative financing as companies seek diverse funding sources beyond traditional banking channels.