erad, an alternative financing platform for SMEs based in Riyadh, has raised US$16 million in a Pre-Series A funding round.

The investment will support the company’s growth and expansion within Saudi Arabia and other regions.

The round saw backing from a range of global and regional funds, including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.

The funding will enable erad to continue offering flexible and rapid financing solutions to underserved businesses through its proprietary, data-driven platform.

erad focuses on revenue-generating businesses and provides access to Shariah-compliant financing within 48 hours.

Salem Abu-Hammour, Co-founder of erad, said,

“Over 60% of our customers are first-time credit takers and we are proud to be partners in their growth while fostering financial inclusion. Together with our investors, we are excited to play a role in the growth of these SMEs which are having significant economic impact in the region.”

To date, erad has provided over SAR 100 million (US$26.6 million) in funding to businesses across Saudi Arabia and the UAE, helping to drive growth in these markets.

The platform has seen substantial demand, with over SAR 2 billion (US$532 million) in funding requests since its launch, highlighting the need for alternative financing options for SMEs in the region.

erad serves a variety of sectors, including retail, F&B, e-commerce, and healthcare, and has worked with companies such as Citron, Wixsana, and House of Pops.

The company intends to use the new investment to strengthen its market presence and expand its product offerings.

It also plans to increase local hiring in Saudi Arabia across various roles. erad remains focused on improving financial accessibility for SMEs, supporting sustainable economic growth, and contributing to Saudi Vision 2030’s goal of increasing SME participation in the national economy.

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