erad, the Saudi Arabia-based alternative financing platform for SMEs, has announced raising $16 million in a Pre-Series A. Y Combinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital backed the round.
Why does it Matter? The company saw follow-up investment from Y Combinator.
More to Know:
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Erad was founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said.
- It is a financing platform that helps SMEs access working capital, offering them alternative and flexible financing solutions such as revenue-based and fixed-term financing.
- According to erad, it uses a proprietary data-driven financing platform and gives SMEs access to Shariah financing within 48 hours.
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erad said it has supported hundreds of businesses with over SAR 100 million ($26.6 million) in funding in Saudi Arabia and the UAE; clients include brands like Citron, Wixsana and House of Pops.
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The investment will be used to deepen its market presence and expand its product offerings, particularly in Saudi Arabia.
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In summer 2022, erad was the first Saudi startup to participate in Y Combinator’s accelerator program – S22 batch.
Related Comments:
- Salem Abu-Hammour, Co-founder of erad, commented: “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% of our customers are first-time credit takers, and we are proud to be partners in their growth while fostering financial inclusion. Together with our investors, we are excited to play a role in the growth of these SMEs, which are having a significant economic impact in the region.”