Venture Debt Firm Stride Bets on #SaudiArabia With $200 Million - Bloomberg

Venture Debt Firm Stride Bets on Saudi Arabia With $200 Million - Bloomberg

Venture debt firm Stride Ventures has made its first foray into Saudi Arabia and plans to deploy $200 million there in the next two years to capitalize on the kingdom’s push for new sources of financing.

Stride, which has already extended more than $1 billion in credit across India, Southeast Asia and the UK, recently led a funding round into Saudi financial technology firm Erad. The deal marks Stride’s first fintech investment in the Middle East and kicks off its investment push in Saudi Arabia, according to Fariha Javed, a partner.

The company plans to lend to a diverse mix of Saudi companies — in terms of both size and industry — and is looking to extend another $50 million to firms in the United Arab Emirates after recently closing its first Gulf-focused fund, Javed said in an interview. Stride plans to later recycle capital to the Middle East.

“We want to end up deploying $500 million within the next four years in the region,” Javed said.

The expansion comes as venture investment and private credit grow in prominence in the kingdom, with entities from the state to companies and banks seeking alternative sources of funding to help drive Crown Prince Mohammed bin Salman’s economic overhaul.

Private debt in Gulf Cooperation Council nations and Egypt may grow at a compound annual rate of 30% over the next five to six years as international investors continue to expand their regional presence, according to PricewaterhouseCoopers LLP.

Stride is also in talks with a construction technology company on another deal, Javed said, without disclosing further details. Its backing of a $33 million funding round in Erad, a startup providing financing to small and medium-sized enterprises, will support the company’s expansion across Saudi Arabia and the UAE.

Founded in 2022, Erad plans to deploy more than $100 million for SMEs in the coming year, according to co-founder Salem Abuhammour.

Stride has been operating out of New Delhi since 2019 and has backed over a hundred companies including India-based grocery delivery startup Zepto, which is said to be planning an initial public offering later this year or in early 2026. The firm expects seven of its portfolio companies to go public “very soon,” Javed said.