erad raises $22M Series A to expand SME financing across the Gulf
What's the deal? Saudi alternative financing platform erad has raised $22 million (78.75 million SAR) in a Series A round led by Middle East Venture PartnersDealroom has a profile for this one. Try Dealroom →. The raise brings the company's total equity funding to $32 million.
Who's in? New backers include SVCDealroom has a profile for this one. Try Dealroom →, 500 Global, S60 VenturesDealroom has a profile for this one. Try Dealroom →, ANB CapitalDealroom has a profile for this one. Try Dealroom →, Conjunction CapitalDealroom has a profile for this one. Try Dealroom →, and Araya Ventures. Existing investors Khwarizmi Ventures, Nuwa CapitalDealroom has a profile for this one. Try Dealroom →, Aljazira CapitalDealroom has a profile for this one. Try Dealroom →, Oraseya CapitalDealroom has a profile for this one. Try Dealroom →, and Joa CapitalDealroom has a profile for this one. Try Dealroom → also joined.
What does erad do? Founded in 2022, it provides small and medium enterprises (SMEs) in Saudi Arabia and the UAE with Shariah-compliant working capital of up to $2.7 million (10 million SAR). Its proprietary artificial intelligence (AI) models process larger financing volumes while managing risk.
By the numbers: erad serves more than 500 businesses in Saudi Arabia and has posted eightfold year-over-year growth. It has fielded over $1 billion (4 billion SAR) in financing requests and deployed more than $133 million (500 million SAR) to date.
What's the money for? The proceeds will fund new financing products for the industrial, logistics, and manufacturing sectors, alongside expansion across the Gulf Cooperation Council. erad also plans to grow its regional team, focusing on technology and commercial roles.
Why now? The round follows a busy year: a $16 million (60 million SAR) pre-Series A in April 2025, then $33 million in debt financing led by Stride Ventures and a $125 million debt facility from Jefferies.
The signal: Cumulative credit facilities to Saudi micro, small, and medium enterprises reached $124.5 billion by the end of 2025, up 33% year on year. erad's raise ranks among the larger Series A rounds in its sector, positioning it to chase a widening financing gap as the kingdom pushes SME growth.
Read more: forbesmiddleeast.com
Image credit: Erad
