For many small and medium-sized businesses, growth is often constrained by something surprisingly basic: access to working capital.
A company may have customers, contracts and a growing order book, yet still struggle to finance inventory, expand a fleet, open a new location or take on a larger contract. In the GCC, where SMEs account for a significant share of economic activity, that financing gap has created an opportunity for alternative lenders.
Saudi Arabia-based fintech erad is building its business around that opportunity.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini and Youssef Said, the Riyadh-headquartered company has raised $22 million in Series A funding, bringing together a group of new and existing investors as it prepares to expand across the GCC.
Building a Faster Route to Working Capital
Erad provides SMEs in Saudi Arabia and the UAE with Shariah-compliant working-capital financing of up to SAR 10 million.
Its technology-driven underwriting model uses business data and AI to assess companies and determine financing needs. The company says businesses are approved in an average of 48 hours, addressing a problem that traditional financing can struggle to solve: speed.
For a growing company, waiting weeks for financing can mean missing an opportunity. erad’s proposition is built around providing capital when businesses actually need it.
The company has already deployed more than SAR 500 million ($133 million) in cumulative financing to SMEs and received more than SAR 4 billion ($1 billion) in financing requests.
Those numbers point to a much larger financing demand than erad’s current deployment.
8x Growth Signals Rising Demand
The new funding comes after erad reported 8x year-over-year growth in Saudi Arabia.
The company is also expanding beyond its original target sectors. Its financing is now reaching businesses in areas including logistics, medical equipment and wholesale distribution, with the company planning to focus even more heavily on capital-intensive industries.
For these businesses, working capital can determine how quickly they can scale.
Fleet operators may need financing to add vehicles. Distributors need inventory. Manufacturers need equipment and raw materials. Companies winning larger contracts may need additional liquidity before they receive payment.
Erad’s financing is designed to provide that capital without tying up the cash businesses need for day-to-day operations.
According to the company, 85% of its clients continue to grow with erad and expand their financing within their first year.
Salem Abu-Hammour: “Fast, Fair, and Frictionless”
For co-founder and CEO Salem Abu-Hammour, the company’s opportunity comes down to making financing work better for businesses that are already growing.
“We have proven that our model works and businesses across sectors are coming to us because we make financing fast, fair, and frictionless.”
The next stage, he says, is about going beyond the products erad already offers.
“What excites me most is where we go from here, which is deeper into new sectors, into new products that did not exist before, and powering the businesses that are scaling across the region.”
That expansion will focus particularly on industrial, logistics and manufacturing companies, sectors where financing requirements can be significantly larger and more complex.
AI at the Center of Underwriting
The company’s technology is central to its ability to scale.
Erad uses proprietary AI models and business data to assess companies, monitor cash flows and manage financing risk. The platform is designed to process higher volumes and larger financing tickets while maintaining underwriting discipline.
The approach also allows erad to understand how existing customers’ financing requirements evolve over time.
Rather than treating financing as a one-time transaction, the company can track business cash flows and identify when additional capital may be required.
Financing is available up to SAR 10 million, with products structured to remain fully Shariah-compliant.
Backed by a Broad Investor Group
The $22 million Series A was led by MEVP, with participation from new investors including 500 Global, Saudi Venture Capital (SVC), S60 Ventures, ANB Capital, Conjunction Capital and Araya Ventures.
Existing investors Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital and Joa Capital also participated.
MEVP Partner Jad El Boustani highlighted erad’s combination of market opportunity, technology and underwriting discipline.
“What gives us the most conviction is the team: Salem and the founding team have paired real domain expertise with disciplined execution.”
The investment follows another significant financing milestone. In November 2025, erad secured a $125 million scalable facility led by Jefferies, giving the company additional capacity to finance its growing SME customer base.
The Next Chapter Is the GCC
With the Series A funding, erad plans to develop new financing products, expand further across the GCC and increase its technology and commercial teams.
Its immediate focus will be on sectors where companies require substantial working capital to grow, particularly industrial, logistics and manufacturing.
The broader opportunity is tied to the continued expansion of Saudi Arabia and the wider GCC economy. As businesses take on larger contracts, enter new markets and invest in capacity, the need for fast and flexible financing grows alongside them.
For erad, the ambition is to become more than an alternative lender. Its strategy is to build a technology-driven financing platform that can follow SMEs as their capital requirements evolve.
And with more than SAR 500 million already deployed, SAR 4 billion in financing requests and 8x year-over-year growth in Saudi Arabia, erad is entering its next phase with a substantial market already in front of it.
