Since its inception, ERAD has requested more than $532 million in funding from well-known regional brands in Saudi Arabia and the UAE.
Erad, The Riyadh-headquartered alternative financing platform for small businesses has raised $33 million in debt financing to expand its operations in Saudi Arabia and other GCCs. The round was led by Stride Ventures. Recently, it doubled the size of the region's team and achieved the first end of the groundbreaking ADGM Fund V, along with participation from other investors.
This new round strengthens ERAD's mission to close the $250 billion small business credit gap in the region By providing fast and flexible Sharia-compliant financing solutions and providing accessible growth financing for GCC businesses.
The funding round, which closed 20/20 in Riyadh, will be used to expand the presence of ERAD in Saudi Arabia and the United Arab Emirates, expanding its operations and meeting increased demand from small and medium-sized businesses in areas such as retail, F&B, healthcare and e-commerce.
“This investment follows a strong period of five-fold growth (Yoy) as it doubles its expansion in Saudi Arabia. Access to capital is one of the key challenges for small and medium-sized businesses across the region. We look forward to sharing a common vision with our Stride Venture and offering a larger, flexible financing solution as our first regional fintech platform.”
-Salem Abu-Hammour, co-founder, ERAD
Since its launch, ERAD has provided over $50 million in funding to small and medium-sized businesses in local areas. The company's Sharia-compliant platform utilizes its own data modeling for risk assessments, allowing applicants to review and provide funding approval in just 48 hours.
“Debt remains GCC's undeveloped, strong asset class, offering great potential to drive growth for ambitious companies without the need to dilute equity. Through our partnership with ERAD, we leverage startups and small businesses across the region to provide innovative alternative financing solutions that are perfectly aligned with innovative investments that carry out growth. Our vision to revolutionize capital access for the next generation of pioneering companies.”
–Fariha Ansari Javed, partner at Stride Ventures
Since its inception, ERAD has requested more than $532 million in funding from well-known regional brands in Saudi Arabia and the UAE.
