Saudi fintech firm Erad has secured a USD 125 million credit facility in partnership with Jefferies and Channel Capital, marking Jefferies’ first asset-backed SME financing transaction in the Gulf region. The deal is intended to help erad scale its embedded-finance offerings across Saudi Arabia and the wider GCC.
Since its founding in 2022, erad has built a Shariah-compliant, data-driven financing platform that allows SMEs in retail, healthcare, F&B, and e-commerce sectors to receive funding approvals in as little as 48 hours. The company previously raised USD 33 million in debt financing to expand operations across Saudi Arabia and the UAE, and the new facility will enable it to broaden ticket sizes up to SAR 10 million for sectors including manufacturing, logistics, distribution, and real estate.
The facility is also designed to support erad’s embedded-finance model, integrating working capital access directly at the point of sale, allowing SMEs to finance operations seamlessly while remaining fully compliant with local regulations. The firm reports a six-fold year-over-year growth and more than USD 700 million in cumulative funding requests, reflecting strong demand for accessible SME finance across Gulf economies.
The GCC continues to face an SME financing gap estimated at approximately USD 250 billion, with many smaller businesses struggling to access traditional debt. By providing technology-driven and scalable financing, erad aims to increase working-capital availability for SMEs and support operational growth and hiring.
Jefferies’ Managing Director, Mark Collier, said the firm views erad’s platform as a way to deliver real-time working capital solutions to SMEs across the region, while Channel Capital’s CIO, Johan Nisser, highlighted the deal as the firm’s first major Shariah-compliant financing transaction in Saudi Arabia.
This $125 million facility follows erad’s previous debt round and pre-Series A funding of $16 million, part of a growing wave of institutional and venture capital interest in GCC fintech and alternative finance. By combining regulatory-compliant finance, tech-driven underwriting, and embedded financing, erad is positioning itself to bridge the SME financing gap and provide flexible access to working capital across the Gulf.
Saudi fintech Erad raises $125M to expand embedded SME Lending in Gulf