Riyadh‑based fintech Erad has secured a $125 million credit facility led by Jefferies, with co‑investment from Channel Capital. The facility is designed to provide working capital and financing solutions for small and medium enterprises across Saudi Arabia and the wider Gulf region.
Scaling Embedded Finance
Founded in 2022, Erad focuses on Shariah‑compliant financing for SMEs. The new facility will allow the company to offer larger ticket sizes, reaching up to SAR 10 million per business. Its model embeds financing directly at the point of sale, enabling suppliers and platforms to integrate capital solutions seamlessly and accelerate cash flow for businesses.
Addressing the SME Financing Gap
SMEs in the GCC face a significant funding gap, estimated at $250 billion. By offering fast, flexible, and data‑driven financing, Erad aims to bridge this gap. The facility reflects growing global investor confidence in alternative finance solutions and their potential to drive economic diversification in the region.
Implications for the Region
The $125 million facility strengthens Erad’s capacity to scale, potentially reshaping SME financing across the GCC. Its embedded‑finance model could reduce reliance on traditional banking processes, enabling more businesses to access capital quickly and efficiently.
A Step Forward for Gulf Fintech
With support from Jefferies and Channel Capital, Erad is poised to expand its reach and solidify its position in the fintech ecosystem. The facility is a significant milestone for SME financing in the region, offering a template for rapid, compliant, and accessible business funding.
