Riyadh – Sharikat Mubasher: Saudi-based alternative financing platform erad announced it has raised $22 million (SAR 78.75 million) in a Series A round led by Middle East Venture Partners (MEVP) to expand Shariah-compliant financing solutions for small and medium-sized enterprises (SMEs) across the GCC.

As per the company’s press release, this round attracted new investors including 500 Global, Saudi Venture Capital (SVC), S60 Ventures, ANB Capital, Conjunction Capital, and Araya Ventures, while existing backers Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital, and Joa Capital also participated.

The funding follows an eightfold year-over-year growth in Saudi Arabia. Erad has provided more than SAR 500 million in financing to SMEs to date, against over SAR 4 billion in financing requests, highlighting continued demand for working capital.

Founded in 2022, erad serves businesses across healthcare, logistics, manufacturing, wholesale, retail, and other sectors in Saudi Arabia and the UAE. Its financing solutions reach up to SAR 10 million, with AI-powered underwriting enabling approvals within 48 hours.

Following the Series A, erad plans to expand its financing products, particularly for industrial, logistics, and manufacturing businesses, while growing its technology and commercial teams across the region.