Saudi Arabia’s Erad, the alternative financing platform making waves in the region, has bagged a fresh $33 million in debt financing. The round led by Stride Ventures, one of India’s biggest venture debt players, closed during the Money20/20 Riyadh event, adding a layer of spotlight to the announcement.
For anyone tracking Gulf fintech, this is a strong signal that alternative financing is moving firmly into the mainstream.
Launched in 2022 by founders Salem Abu Hamour, Fares Yagmor, Abdulmalek Almaihiny, and Yousif Saeed, Erad has built its reputation on providing fast, flexible, and Sharia-compliant working capital solutions.
The target? SMEs in Saudi Arabia and the UAE, where access to funding is often cited as a top challenge.
Abu Hamour was quick to underline the momentum: “We’ve achieved 5x year-on-year growth and are doubling down on our expansion in the Saudi market. Access to capital remains a major challenge for SMEs.”
And he’s not wrong. The region faces an estimated $250 billion SME funding gap, and Erad is positioning itself as one of the platforms to close it. Since launch, they’ve processed over $532 million in funding requests and disbursed upwards of \$50 million across sectors like retail, F&B, healthcare, and e-commerce.
Stride Ventures Bets Big on Erad, GCC
From the investor side, the backing carries weight. “Venture debt remains an underutilised asset class in the Gulf, but it has tremendous potential to fuel business growth without equity dilution,” said Fareeha Ansari Javed, Partner at Stride Ventures. For Gulf startups wary of giving up ownership, that’s a pitch that will land well.
This isn’t just another funding headline. The move signals a shift in the Gulf’s financing playbook, where equity has long dominated the startup conversation.
Venture debt offers founders a new lever, growth capital without giving away control. As regulators push for financial sector diversification under Vision 2030, and SMEs continue to look for smarter, compliant funding solutions, Erad’s playbook feels very much in step with the region’s next growth chapter.
