Erad Secures $1.6 Million to Bridge MENA's SME Credit Gap
Saudi fintech Erad has successfully raised a $1.6 million Pre-Series A bridge round to accelerate its mission of providing crucial financing to small and medium-sized enterprises across the MENA region. This funding will fuel expansion and enhance the company's technology platform designed to address the significant SME funding shortfall.
Key Details
The $1.6 million funding round was led by new investor Honeycombe Ventures, with continued participation from existing investors Seedra Ventures and Sukna Ventures, alongside several angel investors. This capital injection signifies investor confidence in Erad's approach to solving the persistent challenge of SME access to credit in the region.
Addressing the MENA SME Credit Gap
SMEs are the backbone of the MENA economy, yet they face significant hurdles in securing timely and flexible financing from traditional lenders. Erad tackles this by offering data-driven financing solutions. The company leverages advanced AI and machine learning algorithms to assess risk and make lending decisions, aiming to provide a quicker and more accessible alternative for businesses that may be underserved by banks. Their platform aims to provide a more efficient process, crucial for busy founders and business owners.
Growth and Impact
Erad plans to deploy the newly secured funds to drive regional expansion, with a particular focus on strengthening its presence in Saudi Arabia and the UAE. A significant portion of the investment will also be allocated to further developing its proprietary technology platform, enhancing its AI/ML capabilities, and growing its team to support this expansion and increased operational capacity. By enabling more SMEs to access necessary working capital and growth financing, Erad seeks to contribute to economic development and job creation in the region.
About Erad
Founded in 2020 by Mohammed Khan (CEO), Abdulmohsin Al-Saif (COO), and Mohammed Al-Jbori (CTO), Erad is a Saudi Arabian fintech startup dedicated to empowering SMEs. The company specializes in providing flexible, Sharia-compliant financing solutions tailored to the specific needs and cash flow patterns of small and medium businesses in the MENA market, utilising technology to streamline the application and approval process.
Looking Ahead
With this successful funding round, Erad is well-positioned to scale its operations and impact. The focus on technological enhancement and strategic regional expansion indicates a clear path towards becoming a key player in addressing the MENA's SME financing challenges. The company aims to continue refining its data-driven approach to unlock financing opportunities for a broader range of businesses, fostering growth across sectors.
Source: Wamda