Erad
Shariah-compliant financing for small and medium businesses based on their sales data, with repayment that follows their revenue
Erad is a Riyadh-based fintech founded in 2022. It went through the Y Combinator accelerator and finances small businesses based on their sales data, and it says it has financed more than SAR 500 million.
What does Erad do?
Erad was founded in Riyadh in 2022. Its founders had previously sold an online store because financing was not available. A business connects its sales data and accounts, Erad assesses it and provides financing within about 48 hours, and repayment is tied to revenue. Its financing is Shariah-compliant through tawarruq, and it operates in Saudi Arabia and the UAE. It raised $22 million in a Series A round in 2026. Its valuation has not been disclosed.
Products
Working capital financing assessed on sales and accounting data, with repayment tied to revenue or to a fixed term
Financing at the point of purchase through supplier platforms, plus invoice and supplier financing
Key features
- Connects sales and accounting data with platforms such as Salla, Foodics and Wafeq
- Financing decision within about 48 hours
- Repayment tied to revenue
- Shariah-compliant financing through tawarruq
- Financing of up to SAR 10 million
- The government-owned Saudi Venture Capital Company took part in the 2026 Series A round, with an undisclosed minority stake
- The Jefferies facility is a credit facility of up to $125 million, not an equity investment, and it is not counted in total funding
- Some coverage reported that the Pre-Series A round may include a portion of debt
- Erad's valuation has not been disclosed
The documentary
They sold their business because they couldn't find financing, then founded a company that finances businesses like theirs.
Follow the channel so you don’t miss itFunding rounds
| Round | Date | Amount | Lead | Investors | Source |
|---|---|---|---|---|---|
| Series A | September 2026 | $22M | MEVP | MEVP, Saudi Venture Capital Company, 500 Global, S60 Ventures, ANB Capital, Conjunction Capital, Araya Ventures, Khwarizmi Ventures, Nuwa Capital, Aljazira Capital, Oraseya Capital, Joa Capital | Source |
| Credit facility (up to) (Debt financing) | November 2025 | $125M | Jefferies | Jefferies, Channel Capital | Source |
| Debt (Debt financing) | September 2025 | $33M | Stride Ventures | Stride Ventures | Source |
| Pre-Series A | April 2025 | $16M | — | Y Combinator, Nuwa Capital, Khwarizmi Ventures, Aljazira Capital, VentureSouq, Oraseya Capital, Joa Capital | Source |
| Pre-seed | September 2022 | $2.4M | — | Nuwa Capital, VentureSouq, Khwarizmi Ventures | Source |
Key investors
Founders
Common questions about Erad
When was Erad founded?
It was founded in Riyadh in 2022 and joined the Y Combinator accelerator in the Summer 2022 batch.
How does Erad work?
A business connects its sales data and accounts, Erad assesses it and provides financing within about 48 hours, and repayment is tied to revenue.
How much funding has Erad raised?
About $40 million in equity rounds, the latest being $22 million in a Series A round in 2026 led by MEVP, plus debt facilities, including one of up to $125 million led by Jefferies.
Who are Erad's founders?
Salem Abu-Hammour, Faris Yaghmour and Yousef Saeed, joined later by Abdulmalik Almuhaini.