Erad Raises $22M Series A to Expand SME Financing Across Saudi Arabia and the GCC

erad Co-founders (L-R): Faris Yaghmour, Youssef Said, Salem Abu-Hammour, and Abdulmalik Almeheini

Riyadh-based alternative financing platform erad has secured $22 million in Series A funding led by Middle East Venture Partners (MEVP), with participation from Saudi Venture Capital (SVC), 500 Global, and ANB Capital.
The firm reports 8x year-over-year growth in Saudi Arabia, having deployed $133 million (SAR 500 million) against a claimed $1 billion pipeline of financing requests.
The capital injection targets expansion into capital-intensive verticals, including logistics, manufacturing, and medical equipment.

Erad Raises $22M Series A to Expand SME Financing Across Saudi Arabia and the GCC

erad, a Riyadh-headquartered alternative financing platform for small and medium-sized enterprises (SMEs), has raised $22 million (SAR 78.75 million) in Series A funding to expand its financing products, technology capabilities, and regional operations.

The round was led by MEVP, with participation from new investors including Saudi Venture Capital (SVC), 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, and Araya Ventures.

Existing investors Khwarizmi, Nuwa Capital, Aljazira Capital, Oraseya, and Joa Capital also participated in the round.

How Much Has Erad Grown in Saudi Arabia?

The Series A follows 8x year-over-year growth in Saudi Arabia, highlighting rising demand for alternative financing among SMEs.

To date, erad has deployed more than SAR 500 million ($133 million) in cumulative financing to SMEs and received more than SAR 4 billion ($1 billion) in financing requests.

The gap between financing requests and deployed capital also points to the scale of unmet working-capital demand among businesses seeking faster alternatives to traditional financing.

Erad's Key Growth Metrics

Metric	Erad's figure
Series A funding	$22M / SAR 78.75M
Saudi Arabia growth	8x YoY
Cumulative SME financing deployed	SAR 500M+ / $133M
Financing requests received	SAR 4B+ / $1B
Typical approval time	Within 48 hours
Clients continuing to grow with erad	85%
Maximum financing available	Up to SAR 10M

Why Is SME Financing Demand Growing Across the GCC?

SMEs account for approximately 50% of regional GDP and employ around two-thirds of the GCC workforce, according to erad. Yet access to working capital remains a constraint for many businesses.

MEVP Partner Jad El Boustani said the firm is backing erad as it addresses what he described as a $250 billion SME financing gap across the GCC.

For erad, the opportunity extends beyond its initial target sectors. The platform is now financing businesses in areas including:

• Logistics
• Medical equipment
• Wholesale distribution
• Industrial businesses
• Manufacturing
• Other capital-intensive sectors

This expansion reflects the company's focus on businesses where working capital can directly support inventory purchases, fleet expansion, new locations, and larger commercial contracts.

How Does Erad's Financing Platform Work?

Erad uses data-driven underwriting and proprietary AI models to assess businesses, track cash flows, manage risk, and support larger financing volumes and ticket sizes.

The platform currently provides multiple working-capital products, with financing available up to SAR 10 million. Its financing is also fully Shariah-compliant, giving businesses access to flexible payment terms when capital is needed.

The company says clients are typically approved within 48 hours, while 85% of clients continue to grow with erad and expand their financing within their first year.

The model is designed around three core capabilities:

1. Faster access to capital: Applications can be approved within 48 hours.
2. Data-driven underwriting: Proprietary models help evaluate cash flows and manage financing risk.
3. Flexible working capital: Businesses can access financing of up to SAR 10 million to support operational and expansion needs.

What Will Erad Do With Its $22M Series A?

Following the Series A, erad plans to expand both its product portfolio and geographic reach.

The company will develop new financing products tailored to sectors where it is seeing increasing demand, particularly industrial, logistics, and manufacturing businesses.

It also plans to expand its team across the region, with strategic hiring focused on technology and commercial functions.

Salem Abu-Hammour, Co-founder of erad, said the company intends to move deeper into new sectors and develop financing products designed around the needs of businesses scaling across the region.

For MEVP, the investment also strengthens its focus on Saudi Arabia and the wider GCC technology ecosystem. Jad El Boustani highlighted erad's combination of 8x year-over-year Saudi growth, 48-hour approvals, technology-driven underwriting, and risk management as key factors behind the investment.

What Does Erad's Series A Mean for GCC SME Financing?

The funding gives erad additional capital to scale a financing model that has already deployed more than SAR 500 million while receiving over SAR 4 billion in financing requests.

Its next phase will focus on broadening the sectors it serves, increasing financing products, and scaling its technology and commercial operations.

As GCC businesses invest in expansion, inventory, equipment, logistics, and new locations, alternative working-capital providers such as erad are positioning themselves to address financing needs that may not always fit traditional lending models.

With $22 million in new equity, 8x annual growth in Saudi Arabia, and a financing pipeline measured in billions of riyals, erad's Series A marks a significant step in its effort to build a larger SME financing platform across Saudi Arabia and the GCC.