erad has raised $22 million (SAR 78.75 million) in Series A funding to expand its Shariah-compliant financing platform for small and medium-sized businesses across the Gulf Cooperation Council. The round was led by Middle East Venture Partners (MEVP).
New investors participating in the financing included SVC, 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, and Araya Ventures. Existing investors Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital, and Joa Capital also participated.
The funding follows significant growth for the Riyadh-headquartered company. erad said its Saudi Arabian business has grown 8x year-over-year, while the platform has provided more than SAR 500 million ($133 million) in cumulative financing to SMEs.
Demand has substantially exceeded the amount of capital deployed. erad has received more than SAR 4 billion ($1 billion) in financing requests from SMEs, highlighting what the company sees as significant unmet demand for working capital across the GCC.
erad provides financing to businesses across industries including logistics, manufacturing, wholesale distribution, healthcare, food and beverage, and medical equipment. Its data-driven underwriting technology analyzes client cash flows to manage risk and determine additional financing requirements.
The company’s proprietary AI models are designed to process higher financing volumes and larger transaction sizes while maintaining underwriting controls. Businesses can access Shariah-compliant financing of up to SAR 10 million, with flexible repayment structures.
erad said customers are approved for financing in an average of 48 hours, while 85% of clients continue growing with erad and expand their financing within their first year.
The company plans to use the Series A funding to develop additional financing products tailored to capital-intensive industries including industrial, logistics, and manufacturing businesses. erad also plans to expand its regional team through hiring across technology and commercial functions.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad operates across Saudi Arabia and the UAE and focuses on providing technology-enabled working capital to SMEs.
MEVP said it is backing erad in part because of what it estimates is a $250 billion SME financing gap across the GCC, along with the company’s growth and technology-driven underwriting approach.
KEY QUOTES:
“SMEs represent approximately 50% of regional GDP and employ two-thirds of the workforce across the GCC, yet face a financing gap that limits their growth. This round marks a pivotal chapter for erad as our clients seek speed to capital and markets. We have proven that our model works and businesses across sectors are coming to us because we make financing fast, fair, and frictionless. 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.”
Salem Abu-Hammour, Co-Founder of erad
“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.”
Jad ELBoustani, Partner at MEVP
