Erad Raises $22 Million in Series A Round Led by MEVP

By: www.wamda.com|09/28/2026 10:26:59
  • Saudi fintech company Erad has raised $22 million in a Series A funding round.
  • The round was led by MEVP, with participation from new investors including the Saudi Venture Capital Company (SVC), 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, Araya Ventures, alongside existing investors Khwarizmi Ventures, Nuwait Capital, Al Jazeera Capital, Oraseya Capital, and Jow Capital.
  • Founded in 2022 by Salem Abu Hamour, Fares Yaghmour, Abdul Malik Al-Muhaini, and Youssef Said, Erad is based in Riyadh and provides small and medium-sized enterprises (SMEs) in Saudi Arabia and the UAE with Sharia-compliant working capital financing solutions of up to 10 million Saudi Riyals, utilizing data and artificial intelligence to assess companies and issue approvals within an average of 48 hours.
  • The company will use the funding to develop new financing products, expand further into Gulf countries, and grow its technical and commercial teams, with a particular focus on capital-intensive sectors including industry, logistics, and manufacturing.
  • In November 2025, Erad secured financing facilities worth $125 million led by Jefferies with participation from Channel Capital.

Press Release:

Erad, the alternative financing platform for small and medium-sized enterprises based in Riyadh, has successfully closed a Series A funding round of $22 million (82.5 million Saudi Riyals) led by MEVP, with participation from new investors including the Saudi Venture Capital Company (SVC), 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, Araya Ventures, alongside existing investors Khwarizmi Ventures, Nuwait Capital, Al Jazeera Capital, Oraseya Capital, and Jow Capital, reaffirming their continued confidence in Erad's growth trajectory.

The round comes after an eightfold growth in Erad's business in Saudi Arabia annually, after the company provided financing exceeding 500 million Saudi Riyals (133 million USD) to SMEs, reflecting the rising demand for alternative growth capital in the Gulf Cooperation Council (GCC) countries. The platform has received financing requests exceeding 4 billion Saudi Riyals (about 1 billion USD) since its launch, highlighting the unmet financing needs in the region.

Today, Erad is experiencing growth beyond its initial target sectors, serving companies in logistics, medical supplies, and wholesale trade. Erad relies on a data-driven methodology to study companies, allowing it to track cash flows of its clients and manage their additional financing needs.

On this occasion, Salem Abu Hamour, co-founder of Erad, stated: "Small and medium-sized enterprises represent about 50% of the regional GDP and employ two-thirds of the workforce in the Gulf countries, yet they face a financing gap that limits their growth potential. This round represents a pivotal moment for Erad, as our clients seek quick access to financing. We have proven the success of our model, and companies across various sectors are turning to us for the flexibility of the financing solutions offered." He added: "We look forward to entering new sectors and products and empowering companies to grow."

For his part, Jad Al-Boustani, partner at MEVP, said: "We invest in Erad because it addresses the estimated $250 billion financing gap for SMEs in the GCC while building sustainable and high-quality financing businesses. What gives us the greatest confidence is the team; Salem and the founding team have combined real sector experience with disciplined execution, turning a clear market need into eightfold annual growth in Saudi Arabia and a scalable approval system within 48 hours. Their tech-first approach and company study methodology balance growth ambition with risk management, which is exactly what the economic transformation in the region needs. This round reinforces MEVP's commitment to Saudi Arabia and the broader tech ecosystem in the Gulf."

The round will benefit Erad by increasing its focus on developing new financing products designed to meet the demand it is witnessing in the market. These products will be tailored to the needs of the sectors in which Erad is expanding, including the industrial sector, logistics, and manufacturing. Erad will also expand its team in the region through strategic hiring in technical and commercial roles.

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