The new funds will go towards further enhancing erad's platform, and expanding into new markets across the region.
erad, a Saudi-based fintech company, has raised $2.5 million in a pre-Seed funding round backed by UAE-based Nuwa Capital and Venture Souq, as well as Saudi Arabian venture capital firm, Khwarizmi Ventures, alongside strategic angel investors.
Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour and Youssef Said, erad is a data-driven platform that evaluates the marketing, sales, and accounting activity of online businesses. Existing track records and potential capability are used to determine an applicant’s eligibility for funding.
“erad was created to provide online businesses with an alternative solution to bank loans or equity investment, and in turn support the growth of the Middle East’s digital economy,” Salem Abu-Hammour, Co-Founder & CEO of erad, tells StartupScene. “We saw that there was an emerging online segment in the region, particularly in the e-commerce space, that needed a tailored financial solution to cover user acquisition and inventory costs but didn’t have a financing source that fit them. What sets us apart is that we deep-dive into relevant data to the business, and don’t stop at the company’s assets and financial position.”
According to the company, funding offers are made within 48 hours, after which capital is deployed instantly. Online payments are also facilitated by erad to enable use of operations and create a seamless experience to users. To date, erad has onboarded more than 25 startups onto its platform. The new funds will go towards further enhancing the platform, and expanding into new markets across the region.
Investments in fintech startups are booming in the MENA region. In the first half of 2022, investments in the sector reached $819 million, almost two times the amount raised during the same period last year, according to data by Dealroom. Some of the startups driving this growth in KSA include Tamara, which raised $100 million and HyperPay, which raised $36.7 million.