erad secures major funding to scale SME financing in the GCC
erad, the Riyadh-based SME financing platform, has secured a USD 125 million credit facility from Jefferies with co-investment from Channel Capital. The funding strengthens erad’s capacity to support small and medium businesses across Saudi Arabia and the wider GCC.
The announcement marks Jefferies’ first asset-backed private credit transaction in the region. The capital will be deployed through CMA-licensed direct financing vehicles managed by erad’s investment arm, allowing the platform to deliver faster and more flexible working-capital solutions.
The deal builds on momentum from September, when erad raised USD 33 million in debt financing to expand its AI-driven underwriting systems and partner network. With the new facility, the company now has the scale to support more SMEs, particularly those using embedded finance at checkout.
Why this matters for SME growth and alternative finance
SMEs make up a significant share of the GCC economy, yet access to working capital is often slow or restrictive. Traditional banks rely on collateral checks, long approval cycles and manual reviews. erad offers a digital alternative. Its model uses instant underwriting, transaction-level analysis and embedded finance tools that allow suppliers or platforms to offer credit within their sales flow.
The technology layer is central. erad’s AI-based scoring draws on real-time revenue data rather than physical collateral. This reduces friction for businesses and accelerates decision-making. Jefferies’ participation signals growing interest from global private-credit firms in the Gulf’s fintech and SME sector.
For Saudi Arabia, the deal aligns with Vision 2030’s push to strengthen entrepreneurship and boost local production, digital commerce and trade. It also positions erad as one of the most well-capitalised alternative-finance platforms in the region.
Who benefits from the expanded financing pool
SMEs across retail, healthcare, logistics, food and beverage, distribution and manufacturing are the primary beneficiaries. Suppliers using erad’s embedded finance tools will be able to handle larger orders and improve liquidity across their networks.
Fintechs, payment providers and B2B platforms in the GCC may also integrate erad’s services to offer instant financing to their customers. Global private-credit funds considering entry into the region will watch this transaction closely as a sign that structured SME debt can be scaled sustainably.
Where erad goes next
erad plans to deploy the new capital into additional sectors and increase financing limits for qualified businesses, with some ticket sizes expected to reach up to SAR 10 million. The company will also expand its network of suppliers and B2B platforms while strengthening its underwriting technology.
Key signals to follow include default rates, volumes of approved SME loans, the growth of embedded-finance partnerships and whether more global funds follow Jefferies into the region. If successful, this facility could reshape SME access to capital across the GCC.
