erad, a Riyadh-based financing platform for SMEs, has raised US$22 million (SAR 78.75 million) in Series A funding led by MEVP.
The round follows eightfold year-on-year growth in Saudi Arabia, where the company has provided more than US$133 million (SAR 500 million) in financing to SMEs.
New investors include Saudi Venture Capital (SVC), 500 Global, S60 Ventures, ANB Capital, Conjunction Capital and Araya Ventures.
Existing backers Khwarizmi, Nuwa Capital, Aljazira Capital, Oraseya and Joa Capital also participated.
erad has expanded beyond its original target sectors and now serves businesses in logistics, medical equipment and wholesale distribution.
Its Shariah-compliant working capital products offer financing of up to US$2.7 million (SAR 10 million).
The company tracks client cash flows and uses its own AI models to assess risk. It says clients are approved within 48 hours on average, and that 85% expand their financing within their first year.
“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,”
said Salem Abu-Hammour, Co-Founder of erad.
“This round reinforces MEVP’s commitment to Saudi Arabia and the wider GCC tech ecosystem,”
said Jad EL Boustani, Partner at MEVP.
With the new funds, erad plans to develop financing products for industrial, logistics and manufacturing businesses.
The company also intends to hire for technology and commercial roles across the region.
Featured image: Edited by Fintech News UAE, based on image by erad via its Press Release.
