This post was originally published on The FinTech Times
Riyadh-headquartered alternative financing platform erad has secured a $125million credit facility to accelerate embedded finance solutions for small and medium-sized enterprises (SMEs) across the Gulf Cooperation Council (GCC). The deal was led by global investment banking firm Jefferies, with co-investment from Channel Capital.
Once finalised, the transaction will mark Jefferies’ first asset-backed financing transaction in the GCC, signaling growing international institutional interest in the region’s fintech ecosystem. The facility is designed to support erad’s expansion plans within the Kingdom of Saudi Arabia and the wider region, where demand for alternative financing is surging.
Closing the $250billion financing gap
SMEs are increasingly viewed as the backbone of economic diversification efforts in the Gulf. According to data cited by erad, these businesses contribute approximately 50 per cent of regional GDP and employ two-thirds of the workforce. However, despite their critical role in driving economic transformation objectives, such as Saudi Arabia’s Vision 2030, SMEs in the region face a significant financing gap estimated at $250billion, which severely limits their growth potential.
erad aims to bridge this gap by providing a technology-driven alternative to traditional banking. Building on a strong performance that has seen 6x year-over-year growth and over $700million in funding requests, the new scalable facility offers
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