erad Raises $16M to Supercharge SME Financing in Saudi Arabia & the GCC

erad, a fast-growing fintech startup, has just raised $16 million (SAR 60M) in a Pre-Series A funding round aimed at expanding its SME-focused financing platform across Saudi Arabia and the wider GCC region.

A Big Win for SME Lending

The funding round was led by some big names in the startup ecosystem, including:

• ✅ Y Combinator
• ✅ Nuwa Capital
• ✅ Khwarizmi Ventures
• ✅ Aljazira Capital
• ✅ VentureSouq
• ✅ Oraseya Capital
• ✅ Joa Capital

This investment will help erad accelerate its growth, hire local talent in Saudi Arabia, and expand its Shariah-compliant, tech-enabled lending platform for underserved small and medium-sized enterprises (SMEs).

Solving a $250B Problem

The GCC region faces a massive $250 billion SME credit gap. SMEs power key industries—from retail to healthcare and F&B—but often struggle to secure the funding they need. That’s where erad steps in.

Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad offers a data-driven, Shariah-compliant financing solution tailored specifically for SMEs in Saudi Arabia and the UAE.

Their platform uses real-time business data to assess creditworthiness and disburse capital faster and more efficiently than traditional banks.

Supporting Vision 2030 Goals

The funding comes at a time when Saudi Arabia is pushing hard to diversify its economy through Vision 2030. Helping SMEs thrive is a key part of that plan. erad’s model is built to boost financial inclusion and support entrepreneurs who have historically been left out of traditional lending systems.

“While SMEs continue to power the GCC economy, entrepreneurs in retail, F&B, healthcare, and beyond struggle to secure the capital they need to scale up,” said Salem Abu-Hammour, Co-founder of erad.
“Over 60% of our customers are first-time credit takers, and we’re proud to support their growth while fostering financial inclusion.”

What’s Next for erad?

With this new funding, erad plans to:

• ✅ Expand operations across Saudi Arabia
• ✅ Hire local talent to build a stronger on-ground presence
• ✅ Enhance its product offerings
• ✅ Scale up its data-driven tech platform to reach more businesses

By providing quick, flexible, and ethical financing options, erad is positioning itself as a key enabler of economic growth and innovation in the region’s SME ecosystem.