Riyadh-based SME financing platform erad has partnered with Jefferies, with co-investment from Channel Capital, to secure a $125 million credit facility aimed at accelerating embedded finance solutions across the Gulf Cooperation Council (GCC).
Boosting SME finance
Once completed, the transaction will represent Jefferies’ first asset-backed financing deal in the GCC and supports the firm’s strategy to expand its footprint in Saudi Arabia. The facility comes as erad continues to scale rapidly, posting sixfold year-on-year growth and processing more than $700 million in funding requests.
The facility’s scalable structure enables erad to meet rising demand from small and medium-sized enterprises in Saudi Arabia and across the wider GCC. Capital allocated to Saudi SMEs will be deployed through Capital Market Authority (CMA)-licensed direct financing funds managed by Erad Partners Capital.
Following the transaction, erad is expanding its product offering across multiple sectors and embedded finance solutions. This allows suppliers and business platforms to integrate financing directly at the point of sale. The model is already live with strategic partners, including healthcare and food and beverage suppliers in Saudi Arabia and the UAE.
The deal builds on erad’s recent momentum, including a $33 million debt financing round led by Stride Ventures.
Mark Collier, managing director at Jefferies, said the combination of erad’s technology platform and Jefferies’ global asset-backed financing expertise will help SMEs across the region access working capital more quickly and efficiently.
Crucial quote
“By embedding financing directly into existing supplier and platform relationships, we’re making working capital as accessible as a payment transaction,” said Salem Abu-Hammour, co-founder of erad. He added that support from regulators, Jefferies, and Channel Capital highlights the strategic importance of alternative finance in advancing Saudi Arabia’s SME growth agenda.
Big number
Since its launch, erad has processed more than $66.7 million in financing for regional SMEs through its 48-hour approval process, helping address part of the GCC’s estimated $250 billion SME credit gap.
Surprising fact
SMEs are central to the GCC’s economic diversification efforts, accounting for around half of regional GDP and employing roughly two-thirds of the workforce.
