erad raises $2.4 million in pre-seed round
- Saudi Arabia-based Fintech erad has raised a $2.4m pre-seed funding round, backed by UAE-based Nuwa Capital and VentureSouq, and 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 non-dilutive growth capital to online businesses in the Middle East. The platform assesses companies’ marketing, sales, and accounting activity in line with the candidate’s existing track record and potential ability to scale to determine eligibility for funding. Funding offers are made within 48 hours, after which capital is deployed.
- The new funds will help improve erad’s platform and boost its expansion into different markets in the region.
erad, the alternative growth funding platform for online businesses across the Middle East, today announced that it has raised $2.4 million in capital. The pre-seed funding round was backed by UAE-based Nuwa Capital and VentureSouq and Saudi venture capital firm Khwarizmi Ventures, with additional private investments from leading 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 grow determines eligibility for funding. Funding offers are made within 48 hours, after which capital is deployed instantly. Online payments are facilitated by erad 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 investments, and thus support 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 bespoke financial solution to cover the costs of user acquisition and inventory, but which did not have a suitable source of funding. What sets us apart is that we dig deep into business-relevant data and don’t stop at company assets and financial condition.
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 startups to be accepted into the Y Combinator accelerator. To date, it has integrated more than 25 startups on its platform.
Faris Yaghmour, co-founder and COO of erad, said, “When we decided to create erad, we were basing this on our own personal experience, having struggled to fund 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 was amazing, it validated what we were developing and working closely with startups who are already using our platform allowed us to refine our proposition.
Funds raised during erad’s pre-seed round will help further enhance the platform and drive the company’s expansion into different markets in the region.
erad is headquartered in Saudi Arabia and is part of the Central Bank of Bahrain’s regulatory sandbox.