Why Are Big Investors Backing Erad?

Imagine being a small business owner in the Gulf. You’ve got the passion, the plan, and a growing customer base—but not the capital you need to really scale. This is the reality for countless entrepreneurs across the region, and it’s exactly the challenge that Erad, a Riyadh-headquartered alternative financing platform, is tackling head-on.

In a major boost to its mission, Erad has just raised US$16 million (SAR 60 million) in a Pre-Series A round to supercharge its growth. The round attracted an impressive lineup of investors, from global giants like Y Combinator to regional powerhouses including Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital.

At the heart of Erad’s story is a mission to unlock access to capital for SMEs—especially those that are revenue-generating but underserved by traditional banks. SMEs are widely recognized as the backbone of the GCC economy, yet the region still faces a staggering US$250 billion credit gap. Erad steps in where banks step back, offering fast, flexible, and Shariah-compliant financing within 48 hours.

As Salem Abu-Hammour, co-founder of Erad, explains:

“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. Over 60 percent of our customers are first-time credit takers, and we’re proud to support their journey. Together with our investors, we’re excited to fuel the growth of businesses that are already making a real economic impact.”

So far, Erad has helped fund hundreds of businesses across Saudi Arabia and the UAE, disbursing over SAR 100 million (US$26.6 million) in financing. Demand for its services is skyrocketing—since launch, the platform has received over SAR 2 billion (US$532 million) in funding requests.

And it’s not just early-stage startups turning to Erad. Their portfolio includes well-known regional names like Citron, Wixsana, and House of Pops—brands that are pushing boundaries in retail, e-commerce, F&B, and healthcare.

With this new funding, Erad is now doubling down. The company plans to expand its team in Saudi Arabia, broaden its product offerings, and deepen its market presence both locally and beyond. All of this supports a much larger vision: enabling broader financial inclusion and advancing Saudi Vision 2030’s goal of increasing SME contributions to the national economy.

In a region where access to capital often defines success or stagnation, Erad is proving that innovation—backed by smart data and a clear mission—can close the gap and open new doors for the businesses that need it most.