Saudi fintech Erad has raised a total of $33 billion to further its ambitious growth plans across Saudi Arabia and the U.A.E., as per a Wamda report.
The fintech has secured funds through debt financing as part of a round led by the Indian venture capital firm called Stride Ventures, with participation from other investors as well.
“This investment follows a strong period of 5x growth (YoY), as we double down on our expansion in Saudi Arabia,” said erad co-founder Salem Abu-Hammour.
“Access to capital remains one of the primary challenges for SMEs across the region. We share a common vision with Stride Ventures, and as their first regional fintech platform, we look forward to delivering flexible financing solutions at greater scale,” he also said.
The update comes amid multiple instances of financing activity in the country for homegrown fintechs, including Tamara’s $2.4 billion facility and HALA’s $157 million series B funding round.
erad is a startup that provides alternative financing options for SMEs that are Shariah-compliant. The company was founded in 2022 by Salem Abu Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Youssef Said. The startup had a pre-series A funding round in April that saw $16 million raised.
The new capital raised is expected to support erad’s expansion in Saudi Arabia and the U.A.E.