Erad
Erad is a Riyadh-based fintech providing Shariah-compliant working capital financing for SMEs across the GCC, primarily the UAE and Saudi Arabia. It offers revenue-based and fixed-term loans from AED 150,000 to AED 10,000,000, using data integrations with commerce, accounting, and banking platforms to underwrite and fund businesses within 48 hours.
- Company typePrivate
- Founded2022
- HeadquartersRiyadh, Saudi Arabia
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Erad does
Erad is a Riyadh-headquartered, Cayman Islands-incorporated fintech that provides Shariah-compliant working capital financing to small and medium-sized businesses in the Gulf Cooperation Council, with current operational focus on the United Arab Emirates and Saudi Arabia. Founded in 2022, the company originates two financing structures — revenue-based financing (repayment as a percentage of monthly revenue) and fixed-term financing (fixed monthly installments) — in ticket sizes ranging from AED 150,000 to AED 10,000,000, with advertised funding decisions in as fast as 48 hours and fees starting from 1.2% per month. Its primary go-to-market targets are restaurants, retail and e-commerce merchants, and (in expansion) healthcare clinics, beauty salons, manufacturing, and logistics SMEs.
The platform's core technology is a data-driven underwriting engine that connects via live integrations to the customer's existing business software — e-commerce (Shopify, Salla, Zid, WooCommerce), accounting (QuickBooks), payments (Stripe), marketing (Google Analytics, Facebook), and banking systems — and uses these signals to assess business health and price risk in place of traditional credit scoring. Complementary product features include top-up facilities for repeat borrowers and a business insights dashboard. UAE activities are conducted through Erad (DIFC) Limited under Dubai Financial Services Authority oversight, and Shariah compliance is certified by Shariyah Review Bureau with an independent Sharia Committee.
Erad's business model is a digital-first, self-serve PLG motion augmented by channel partnerships: customers apply via web or mobile at app.erad.co, and the September 2024 embedded-finance partnership with Salla exposes the product to roughly 70,000 regional online merchants. Revenue is generated through financing fees (a percentage of monthly revenue for the revenue-based product, fixed monthly installments for the term product). The company has raised approximately $176 million cumulatively across a $2.4 million pre-seed (2022), a $16 million round (2025), a $33 million debt facility from Stride Ventures (September 2025), and a $125 million asset-backed credit facility led by Jefferies with Channel Capital (November 2025), with backers including Y Combinator, Nuwa Capital, VentureSouq, Khwarizmi Ventures, Aljazira Capital, Joa Capital, and Oraseya Capital.
Erad firmographics
Firmographics- Name
- Erad
- Legal name
- Erad Technology Holding
- Website
- https://erad.co
- Company type
- Private
- Founded year
- 2022
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Erad is a Riyadh-based fintech providing Shariah-compliant working capital financing for SMEs across the GCC, primarily the UAE and Saudi Arabia. It offers revenue-based and fixed-term loans from AED 150,000 to AED 10,000,000, using data integrations with commerce, accounting, and banking platforms to underwrite and fund businesses within 48 hours.
- Ownership category
- akta.pro rank
Erad industry classification
Industry- Product category
- Alternative SME Lending
- NAICS
- Finance and Insurance (52)
- SIC
- Short-Term Business Credit Institutions (6153), Asset-Backed Securities (6189)
- akta.pro primary industry
- Corporate Treasury & Supplier Payments (AP, Mass Payments) (FSAMAKAL)
- akta.pro secondary industries
- Islamic Investment Banking & Capital Markets Services (FSABAGAG), Emerging Markets Debt (Hard & Local Currency) (FSACABAJ)
Keywords
Where Erad is headquartered
LocationHeadquarters
- HQ city
- Riyadh
- HQ country
- Saudi Arabia
- HQ region
- Middle East
Offices2 records
Markets served
Erad business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure, Others
Revenue model
- Growth Funding Fees: Revenue-based and fixed-term financing fees charged to SMEs. Fees calculated as small percentage of monthly revenue for revenue-based financing, or fixed monthly installments for term financing. Financing amounts range from AED 150,000 to 10,000,000 with fees starting from 1.2% per month.
- Revenue-Based Financing: Small percentage of revenue to pay down the full financing amount, suitable for seasonal businesses with fluctuating cash flows
- Fixed-Term Financing: Fixed monthly installment to pay down the full financing amount, ideal for large inventory purchases, seasonal marketing campaigns, or retail space expansion
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Usage-based | Monthly | Growth Funding Range |
| Usage-based | Monthly | Revenue-Based Financing |
| Unit Pricing | Monthly | Fixed-Term Financing |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels5 records
Erad product offering
Product offeringCore offering
Erad provides Shariah-compliant working capital financing (Growth Funding) to SMEs and online businesses in the GCC region, primarily UAE and Saudi Arabia. Financing amounts range from AED 150,000 to AED 10,000,000, delivered in as fast as 48 hours through two structures: Revenue-Based Financing (small percentage of monthly revenue) and Fixed-Term Financing (fixed monthly installments). Underwriting is data-driven, leveraging live integrations with sales, marketing, accounting, payment, and banking platforms rather than traditional credit scoring.
Product overview
Erad is a Riyadh-based embedded finance platform offering Sharia-compliant working capital financing for online businesses across the GCC region, primarily serving the UAE and Saudi Arabia. The core product is Growth Funding, which provides non-dilutive capital (AED 150,000 to 10,000,000) based on data-driven business assessment. The platform operates two main financing structures: Revenue-Based Financing (repayment as percentage of revenue) and Fixed-Term Financing (fixed monthly installments), both designed for quick access with offers delivered within 48 hours. Additional features include Top-Up Facilities for existing customers and a Business Insights Dashboard providing sales, marketing, accounting, and banking analytics. The platform connects to business software including sales platforms (Shopify), accounting tools (QuickBooks), payment processors (Stripe), and banking systems to assess creditworthiness. The company is regulated by Dubai Financial Services Authority (DFSA) and partnered with Jefferies and Channel Capital for its $125 million credit facility to address the regional SME financing gap.
Differentiator
Problem solved
Functional benefit
Products and services
- Growth Funding Primary Shariah-compliant working capital financing product for SMEs and online businesses in the UAE and Saudi Arabia. Delivers non-dilutive capital of AED 150,000 to AED 10,000,000 within as fast as 48 hours, structured either as Revenue-Based Financing (small percentage of monthly revenue) or Fixed-Term Financing (fixed monthly installments). Underwritten via live integrations with sales, marketing, accounting, payment, and banking platforms.
- Revenue-Based Financing Financing structure under Growth Funding where repayment is a small percentage of monthly business revenue until the full financing amount is repaid. Suited to seasonal businesses and those with fluctuating cash flows.
- Fixed-Term Financing Financing structure under Growth Funding with fixed monthly installments to pay down the full financing amount. Suited for large inventory purchases, seasonal marketing campaigns, or retail space expansion.
Quantifiable outcome
- Revenue growth ranging from 20% to 70% reported by customers within 6-month financing periods
- +2 more outcomes
Companies that use Erad
Customer profileNamed customers10 records
Segments5 records
Ideal customer profiles2 records
Erad technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration9 records
AI capability3 records
Feature3 records
Erad partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core.
- SallacoreErad announced partnership with Salla, a major e-commerce platform in the region, to provide embedded finance solutions to 70,000 online stores. Integration enables seamless financing access for Salla merchants.
- Shariyah Review Bureau (SRB)coreSRB provides Sharia governance advisory services, facilitating Sharia-related discussions, product research, and Sharia reporting. SRB ensures the Sharia Committee operates with independence and autonomy.
Scale indicators7 records
Recent moves6 records
Expansion highlights6 records
Erad competitors and assessment
Company assessmentBroad incumbents
- Funding Circle: Established SMB lending marketplace operating across multiple geographies. Broader and more mature than Erad, but overlapping in providing working capital loans to small businesses.
- BlueVine: BlueVine provides credit, checking, and working capital solutions to SMBs via a digital platform. Comparable digital-first SMB financing, though broader in product scope than Erad.
- OnDeck: OnDeck provides term loans and lines of credit to small businesses using data-driven underwriting. Overlaps with Erad on data-led SMB credit, but operates at much larger scale in established markets.
Others
- Salla: Saudi e-commerce platform that is Erad's distribution partner for embedded finance across 70,000 merchants. An ecosystem enabler rather than competitor; key to Erad's go-to-market.
Direct peers
- Clearco (formerly Clearbanc): Clearco provides revenue-based financing to online businesses and SMEs, evaluating companies using data from connected platforms (Shopify, Amazon, etc.). Closely matches Erad's data-driven, non-dilutive, revenue-share model for digital SMBs.
- Wayflyer: Wayflyer offers revenue-based financing to e-commerce and DTC brands, using connected platform data (Shopify, Amazon) for fast funding decisions. Highly comparable to Erad in product, target customer, and underwriting approach.
- Uncapped: Uncapped provides revenue-based and growth capital to SaaS and e-commerce businesses via a data-driven, non-dilutive model. Closely comparable to Erad's assessment-driven, fast-approval SME financing.
- Lendo: Saudi Arabia-based Sharia-compliant SME lending marketplace connecting businesses with multiple financiers. Directly comparable as a Riyadh-headquartered, Sharia-compliant SME working-capital provider.
- Beehive: UAE-based P2P / digital marketplace lending platform for SMEs. Comparable as a regional alternative-financing platform focused on working capital for GCC businesses.
- Credibly: Credibly provides working capital loans and lines of credit to small businesses with fast approvals and data-driven underwriting. Comparable product (SME working capital) and similar tech-led origination model.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Erad social profiles
Digital presenceErad financial estimates
Financial estimateRevenue estimate
Valuation estimate
Erad leadership team
Management profileNumber of profiles
Profiles3 records
Erad funding detail
Funding detailFunding overview
Funding rounds7 records
Investors22 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Erad M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Erad
What does Erad do?
Erad provides Shariah-compliant working capital financing (Growth Funding) to SMEs and online businesses in the GCC region, primarily UAE and Saudi Arabia. Financing amounts range from AED 150,000 to AED 10,000,000, delivered in as fast as 48 hours through two structures: Revenue-Based Financing (small percentage of monthly revenue) and Fixed-Term Financing (fixed monthly installments). Underwriting is data-driven, leveraging live integrations with sales, marketing, accounting, payment, and banking platforms rather than traditional credit scoring.
Is Erad a public or private company?
Erad is a private company. It is classified as venture growth investor backed and is currently operating.
When was Erad founded?
Erad was founded in 2022. It employs 11 to 50 people.
Where is Erad based?
Erad is headquartered in Riyadh, Saudi Arabia, in the Middle East region.
How does Erad make money?
Three revenue lines are on record. Growth Funding Fees are the primary driver. The others are revenue-Based Financing and fixed-Term Financing.
Who are Erad's main competitors?
Broad incumbents on record are Funding Circle, BlueVine and OnDeck. Salla is listed as an others. Direct peers are Clearco (formerly Clearbanc), Wayflyer, Uncapped, Lendo, Beehive and Credibly.
Does Erad have an API?
No public API is recorded for Erad.
What industry is Erad in?
Erad's product category is Alternative SME Lending. Its primary akta.pro industry code is FSAMAKAL, Corporate Treasury & Supplier Payments (AP, Mass Payments), with a secondary code of FSABAGAG, Islamic Investment Banking & Capital Markets Services. Its NAICS code is 52 and its SIC code is 6153.