Saudi Fintech Erad Secures $22M Series A Funding

Riyadh-based alternative financing platform erad has successfully closed a $22 million Series A funding round, signaling a significant boost for small and medium-sized enterprises (SMEs) across the GCC. The investment, led by venture capital firm MEVP, saw robust participation from a syndicate of prominent investors including 500 Global, Saudi Venture Capital (SVC), S60 Ventures, ANB Capital, Conjunction Capital, and Araya Ventures. Existing backers Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital, and Joa Capital also reaffirmed their confidence in the company's growth trajectory.

This capital infusion arrives as erad reports an impressive 8x year-over-year expansion within Saudi Arabia, having already disbursed over SAR 500 million (approximately $133 million) in cumulative financing. The company's platform addresses a critical financing deficit, having fielded over SAR 4 billion ($1 billion) in funding requests from SMEs, highlighting the substantial unmet demand for working capital solutions in the region. The average approval time of just 48 hours, coupled with a 48-hour approval engine, underscores erad's commitment to speed and efficiency in capital deployment.

Founded in 2022, erad specializes in providing Shariah-compliant working capital financing, offering up to SAR 10 million to SMEs in Saudi Arabia and the UAE. Leveraging advanced data analytics and artificial intelligence, the platform meticulously assesses business financials to expedite approvals. The newly acquired funds are earmarked for the development of innovative financing products, strategic expansion throughout the GCC, and the scaling of its technology and commercial teams. A particular focus will be placed on supporting capital-intensive sectors such as industrial, logistics, and manufacturing, which are experiencing rapid growth across the region.

The broader economic context in the GCC emphasizes the vital role of SMEs, which constitute roughly 50% of the regional GDP and employ two-thirds of the workforce. However, these businesses frequently encounter a significant financing gap that impedes their expansion. erad's data-driven underwriting model allows for real-time cash flow tracking, effective risk management, and the identification of additional financing needs, enabling businesses to secure funds for fleet expansion, inventory, new locations, and larger contracts without compromising their operational liquidity. Notably, 85% of erad's clients continue to grow with the platform, often expanding their financing within the first year.

Jad EL Boustani, Partner at MEVP, commented on the investment, stating, "We're backing erad because they're addressing the GCC's estimated $250 billion SME financing gap while building a sustainable, high-quality financing business. What gives us the most conviction is the team: Salem and the founding team have paired real domain expertise with disciplined execution, turning a clear market need into 8x year-over-year growth in Saudi and a 48-hour approval engine that scales. Their technology-first approach and rigorous underwriting balance growth ambition with risk discipline, which is exactly what the GCC's economic transformation needs." This investment further solidifies MEVP's commitment to the Saudi Arabian and wider GCC tech ecosystems.

erad's success is further evidenced by a substantial $125 million scalable facility secured in November 2025, led by Jefferies. This demonstrates the company's ability to attract significant debt financing, complementing its equity raises and underscoring its robust financial standing and growth potential. The company's proprietary AI models are instrumental in processing higher volumes and larger financing ticket sizes while maintaining stringent risk controls, positioning erad as a key enabler of SME growth in a rapidly evolving economic environment.