erad raises $2.4 million ahead of seed round
- Saudi Arabia-based fintech Erad has raised a $2.4 million pre-seed funding round, backed by UAE-based Nuwa Capital and VentureSouq, as well as Saudi Arabian VC Khwarizmi Ventures. , with additional private investment from regional angel investors.
- Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour and Youssef Said, erad is a data-driven platform that provides undiluted growth capital for online businesses in the Middle East. The platform assesses the businesses’ marketing, sales and accounting activity in line with the applicant’s existing history and potential ability to scale by determining their eligibility for funding. Financing offers are made within 48 hours, after which capital is deployed.
- The new funds will help improve erad’s platform and boost its expansion to different markets in the region.
erad, the alternative growth financing platform for online businesses across the Middle East, announced today that it had raised $2.4 million in capital. The pre-seed funding round was backed by UAE-based Nuwa Capital and VentureSouq and Saudi Arabian venture capital firm Khwarizmi Ventures, with additional private investment from prominent regional angel investors.
Co-founded by Salem Abu-Hammour, Faris Yaghmour and Youssef Said, erad’s secure data-driven platform assesses the marketing, sales and accounting activity of promising online businesses. The applicant’s existing track record and potential ability to scale determine their eligibility for funding. Financing offers are made within 48 hours, after which capital is instantly deployed. Erad facilitates online payments to enable operational ease and a seamless user experience.
Salem Abu-Hammour, co-founder and CEO of erad, said: “erad was created to provide online businesses with an alternative solution to bank loans or equity investment, while also supporting the growth of the digital economy. from the Middle East. We saw that there was an emerging online segment in the region, particularly in the e-commerce space, that needed a customized financial solution to cover inventory and user acquisition costs, but did not have an adequate funding source. What sets us apart is that we dig into the data relevant to the business and don’t stop at the assets and financial position of the company.”
Since launching a closed beta program in May 2022, erad has successfully participated in the Fintech Saudi program and was one of the first Saudi-based startups to be accepted into the Y Combinator accelerator. To date, it has onboarded more than 25 startups on its platform.
Faris Yaghmour, co-founder and COO of erad, commented: “When we set out to build erad, we drew from our own personal experience of having struggled to finance an e-commerce business in the past. We understood the pain points first hand and knew what was needed in the solution. The market response to erad has been incredible – it has validated what we are developing and working closely with startups that are already using our platform has allowed us to refine our proposition.”
The funds raised in the pre-seed round of erad will contribute to further improve the platform and drive the expansion of the company in different markets in the region.
erad is based in Saudi Arabia and is part of the Central Bank of Bahrain’s regulatory sandbox.