Riyadh - Sharikat Mubasher: Erad, the Riyadh-headquartered alternative financing platform for small and medium-sized enterprises (SMEs), secured SAR 60 million ($16 million) in a pre-series A round to accelerate its growth and expand its operations in Saudi Arabia and beyond.

The round was backed by leading global and regional funds, including YCombinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, and Joa Capital, the company announced in a press release today.

Erad will utilize the funding to offer fast and flexible financing solutions to underserved SMEs through its proprietary, data-driven financing platform.

Salem Abu-Hammour, Co-founder of Erad, said: “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.”

Further, the company will use the investment to deepen its market presence and expand its product offerings, focusing on doubling down on local hiring across multiple roles.

Providing access to Shariah-compliant financing within 48 hours, Erad has supported hundreds of businesses with over SAR 100 million in funding in Saudi Arabia and the UAE to date, driving substantial growth for businesses in both markets.

It is committed to enhancing financial accessibility for SMEs, driving sustainable economic growth, and contributing to Saudi Vision 2030’s objective of increasing SME participation in the national economy.