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erad Raises USD 22M Series A for GCC SME Financing Expansion
MEVP led the round with participation from eleven investors including 500 Global, SVC and ANB Capital.
Saudi Arabia-based SME financing platform erad raised USD 22 million in a Series A round led by Middle East Venture Partners. The round included participation from 500 Global, SVC, S60 Ventures, ANB Capital, Conjunction Capital, Araya Ventures, Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital and Joa Capital. The company disclosed the raise on its website and through investor announcements in May 2025.
erad Series A Allocation and Use of Proceeds#
The USD 22 million will fund expansion of erad's financing products, technology infrastructure and regional team as the company scales SME financing operations across the GCC. The company has provided over SAR 500 million in cumulative financing to date against more than SAR 4 billion in financing requests received. erad operates in Saudi Arabia and the UAE, providing Shariah-compliant working capital solutions to businesses across logistics, manufacturing, wholesale, retail and healthcare sectors.
Investor Composition and Round Structure#
Middle East Venture Partners led the Series A with eleven participating investors. The investor group included venture firms 500 Global and SVC, corporate investors ANB Capital and Aljazira Capital, and regional funds S60 Ventures, Conjunction Capital, Araya Ventures, Khwarizmi Ventures, Nuwa Capital, Oraseya Capital and Joa Capital. The round structure and individual allocations were not disclosed. erad was founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini and Youssef Said.
Product Development and Sector Expansion Plans#
erad stated it will develop new financing products for industrial, logistics, manufacturing and capital-intensive sectors. The company uses technology-based underwriting to assess financing needs and process applications. It provides working capital for businesses scaling production, expanding fleets, building inventory or taking on commercial contracts. The platform offers Shariah-compliant structures. erad will expand its team across technology and commercial functions to support the product rollout and sector entry.
GCC SME Financing Gap and Platform Operations#
SMEs account for approximately 50 percent of regional GDP and employ two-thirds of the workforce across the GCC, according to regional economic data. The financing gap between demand and available capital remains a constraint for businesses seeking expansion capital. erad has moved beyond its initial focus to serve companies across logistics, manufacturing, wholesale, retail, healthcare and other sectors. The company's expansion comes as GCC governments seek to grow private sector activity and diversify economies beyond traditional industries.
Sources1 source across 1 domain
- waya.mediawaya.mediaUSD 22 million Series A amount, MEVP as lead investor, eleven participating investors, SAR 500 million cumulative financing provided, SAR 4 billion in financing requests, founding team names and founding year
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