Crowdfund Insider·2025-11-30 22:30Core Insights - Erad has partnered with Jefferies and Channel Capital to secure $125 million in a credit deal aimed at enhancing embedded finance solutions for SMEs in the GCC region [1] - This transaction marks Jefferies' first asset-backed financing in the GCC and supports its expansion plans in Saudi Arabia [1] - SMEs contribute approximately 50% of the GCC's GDP and employ two-thirds of the workforce, highlighting their importance in economic diversification efforts [1] Company Overview - Erad is a financing platform founded in 2022 that provides Shariah-compliant working capital solutions to SMEs in Saudi Arabia and the UAE [1] - The company has processed over SAR 250 million in financing for regional SMEs, utilizing a 48-hour approval process to address the estimated $250 billion SME credit gap in the GCC [1] - Erad leverages technology to offer flexible financing across various sectors, including retail, healthcare, and food and beverage [1] Industry Context - The partnership with Jefferies and Channel Capital is seen as a transformative moment for SME financing in the region, addressing a significant financing gap that limits growth potential [1] - The support from regulators and financial partners underscores the strategic importance of alternative finance in achieving the Kingdom's SME growth objectives [1] - Channel Capital, a global alternative asset manager, has approximately $26 billion in capital invested and has facilitated financing in over 35 countries as of September 30 [2]