RIYADH: A Saudi-based fintech startup, erad, raised $2.4 million in a pre-seed funding round by UAE-based venture capital firms Nuwa Capital and Venture Souq in addition to Saudi Arabia’s Khwarizmi Ventures.
The company offers a data-driven platform that provides non-dilutive growth capital for online businesses in the Middle East.
The platform evaluates the marketing, sales, and accounting activity of online business and assesses an applicant’s existing track record to determine if the company is eligible for funding.
The funding offers on the platform are made within 48 hours of eligibility acceptance after which the capital is deployed instantly using erad’s online payments solution.
“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 and CEO of erad, said in a statement.
Launching its beta product in May 2022, erad was successful in participating in the Fintech Saudi program that aims to accelerate the sector in the Kingdom.
“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,” Abu-Hammour added.
The company has also secured more than 25 startups on its platform and was accepted into Y Combinator, one of the world’s leading accelerator programs.