Saudi Fintech Erad Secures $16M to Revolutionise SME Financing

Editorial Team

Last updated 30-04-2025

2 min

Saudi start-up Erad secured $16 million in a pre-Series A funding round.

Investors include Y Combinator, Nuwa Capital, and Khwarizmi Ventures, showing strong interest.

Erad offers swift alternative financing solutions for SMEs, promising quick approvals within 48 hours.

The company plans to expand regionally with its new funding boost.

Participation in Y Combinator’s accelerator highlights Erad's innovative approach to SME financing.

These days, hearing about another round of cash injection into a promising start-up is becoming more commonplace than fish and chips on a Friday evening, but here's a bit of news worth your atention. Saudi alternative-finance firm Erad (part of last summer’s 2022 Y Combinator group) has just closed a pre-Series A funding round worth an impressive $16 million.

A bunch of high-profile investors lined up for this round, including heavy hitters like Y Combinator itself, Nuwa Capital, Khwarizmi Ventures, AlJazira Capital, VentureSouq, Oraseya Capital, and Joa Capital. Seems they're all pretty confident Erad is onto something solid in the increasingly competitive small business financing market.

Launched just last year in 2022 by Salem Abu-Hammour, Faris Yaghmour, Abdulmalik Almeheini, and Yousef Saeed, Erad specialises in alternative financing solutions aimed squarely at small and medium-sized enterprises (SMEs). Instead of traditional methods, they offer flexible options ranging from revenue-based models to structured term financing—a lifesaver for SMEs needing speedy access to funds.

Speaking of speedy, Erad claim to utilise data-driven technologies that can rapidly assess potential risk and get approvals sorted within just 48 hours. No hanging around until your tea goes cold!

Erad made headlines last summer by becoming one of the first Saudi start-ups accepted into Y Combinator’s renowned accelerator programme—no small feat given YC’s reputation for working with promising, innovative businesses.

Now, armed with this fresh $16 million boost, the young Saudi fintech outfit aims to broaden its reach both at home and regionally. Perhaps we'll soon hear more entrepreneurs singing Erad's praises—who knows, maybe even a piece here at Arageek will follow their next big move.

Either way, it seems investors have high hopes of Erad being able to shake things up in an already crowded financing scene. Watch this space.

🚀 Got exciting news to share?

If you're a startup founder, VC, or PR agency with big updates—funding rounds, product launches 📢, or company milestones 🎉 — AraGeek English wants to hear from you!