erad, the alternative growth financing platform for online businesses across the Middle East, today announced 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 evaluates the marketing, sales, and accounting activity of promising online businesses. The applicant’s existing track record and potential capability to scale determine its eligibility for funding. Funding offers are made within 48 hours, after which capital is deployed instantly. Online payments are facilitated by erad to allow for operational ease and a seamless user experience.
Salem Abu-Hammour, Co-Founder & CEO of erad, said “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. 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.”
Since launching a closed beta programme in May 2022, erad has successfully participated in the Fintech Saudi programme 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 onto its platform.
Faris Yaghmour, Co-Founder & COO of erad, commented: “When we set out to build erad, we were basing it off our own personal experience 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’s response to erad has been incredible – it has validated what we’re developing, and working closely with the startups who are already using our platform has allowed us to refine our proposition.”
The funds raised in erad’s pre-seed round will contribute to further enhancing the platform and driving the company’s expansion into different markets across the region.
erad is headquartered in Saudi Arabia and is part of the Central Bank of Bahrain’s regulatory sandbox.