erad Raises $22 Million Series A for SME Financing Expansion

erad Raises $22 Million Series A for SME Financing Expansion

The Riyadh-based fintech has deployed over SR 500 million in SME financing and says demand has surpassed SR 4 billion.

Riyadh-headquartered SME financing platform erad has raised $22 million in a Series A round led by MEVP, as the company looks to expand its Shariah-compliant financing products across Saudi Arabia and the wider GCC. The round included new investors SVC, 500 Global, S60 Ventures, ANB Capital, Conjunction Capital and Araya Ventures, alongside existing backers Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital and Joa Capital.

Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini and Youssef Said, erad provides financing of up to SR 10 million to SMEs in sectors including logistics, manufacturing, wholesale, retail and healthcare. The company says it has deployed more than SR 500 million in cumulative financing and grown eightfold year-on-year in Saudi Arabia, while financing requests from SMEs have exceeded SR 4 billion.

erad uses a data-driven underwriting model to assess cash flows and manage risk, with AI supporting approval decisions within an average of 48 hours. According to the company, 85% of clients continue to expand their financing within their first year on the platform.

The new capital will be used to develop additional Shariah-compliant financing products, with a particular focus on industrial, logistics and manufacturing businesses, while expanding erad’s technology and commercial teams. The company currently operates in Saudi Arabia and the UAE.