Riyadh-headquartered alternative financing platform erad has raised $33 million in debt financing, with the round led by India’s Stride Ventures, marking its first major deal in Saudi Arabia. The announcement was made at Money20/20 in Riyadh.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said, erad offers Shariah-compliant, data-driven financing solutions for small and medium enterprises (SMEs) across the GCC. The platform uses proprietary risk assessment models to approve funding in as little as 48 hours and has already processed more than $50 million in financing.
The new facility will be deployed to meet growing demand in Saudi Arabia and the UAE, where SMEs face a $250 billion credit gap. Since launch, erad has received over $532 million in funding requests from SMEs in sectors ranging from retail and F&B to healthcare and e-commerce.
“This investment follows a strong period of 5x year-on-year growth as we double down on our expansion in Saudi Arabia,” said Abu-Hammour. “Access to capital remains one of the primary challenges for SMEs across the region. With Stride, we share a common vision to deliver flexible financing at greater scale.”
For Stride Ventures, the deal represents both a strategic Gulf entry point and an extension of its private credit strategy, having recently achieved the first close of its ADGM Fund V. “Debt remains an untapped and powerful asset class in the GCC,” said Fariha Ansari Javed, Partner at Stride Ventures. “Through our partnership with erad, we are leveraging our expertise to provide SMEs across the region with innovative, Shariah-compliant financing solutions that align perfectly with their growth ambitions.”
