Saudi fintech erad secures $33 mn debt round to tackle GCC’s $250 bn SME credit gap

Saudi Arabian fintech erad has raised $33 million in debt financing to accelerate its expansion in the Kingdom and across the Gulf, aiming to narrow the region’s estimated $250 billion credit gap for small and medium-sized enterprises (SMEs).

The funding round, announced during the Money 20/20 Middle East conference in Riyadh, was led by India’s Stride Ventures with participation from other regional and international investors. The fresh capital will be used to scale erad’s Shariah-compliant, data-driven lending platform and meet rising SME demand in sectors such as retail, food and beverage, healthcare, and e-commerce.

“Access to capital remains one of the primary challenges for SMEs across the region,” said Salem Abu-Hammour, co-founder of erad. “This investment follows a strong period of 5x growth year-on-year as we double down on our expansion in Saudi Arabia.”

Fariha Ansari Javed, partner at Stride Ventures, described the deal as a milestone for Gulf markets. “Debt remains an untapped and powerful asset class in the GCC, offering immense potential to fuel growth for ambitious businesses without the need to dilute equity,” she said.

Launched in 2022, erad provides Shariah-compliant financing to SMEs in Saudi Arabia and the UAE, offering funding within 48 hours through a proprietary platform that analyzes real-time business data to assess risk. The company has already disbursed over $50 million in financing and received funding requests exceeding $532 million, underscoring the scale of unmet demand in the region’s SME sector.

The new debt facility strengthens erad’s ability to offer fast, flexible financing while supporting Saudi Arabia’s broader Vision 2030 agenda of diversifying the economy and empowering entrepreneurs.