Venture debt firm Stride Ventures is making its first foray into Saudi Arabia, with plans to deploy $200 million in the country over the next two years, capitalizing on the kingdom's push for new funding sources. Stride, which has deployed over $1 billion in credit across India, Southeast Asia, and the UK, recently led a funding round for Saudi fintech company Erad. The firm's partner Fariha Javed said the deal marks Stride's first fintech investment in the Middle East and launches its investment drive in Saudi Arabia.
In an interview, Javed said the company plans to provide loans to Saudi companies of various sizes and sectors, and after recently completing its first Gulf-focused fund, it plans to provide an additional $50 million to UAE companies. Stride plans to subsequently reinvest funds back into the Middle East. "We plan to deploy $500 million in the region over the next four years," Javed said.
Stride's expansion comes as venture capital and private credit gain increasing importance in Saudi Arabia. From the state to corporations and banks, all parties are seeking alternative funding sources to help drive Crown Prince Mohammed bin Salman's economic reforms. According to PwC data, private debt in GCC countries and Egypt could grow at a 30% compound annual growth rate over the next five to six years as international investors continue expanding their operations in the region.
Javed said Stride is also negotiating another deal with a construction technology company but declined to provide more details. Stride led Erad's $33 million funding round, with the startup providing financing to small and medium-sized enterprises. This investment will support Erad's expansion in Saudi Arabia and the UAE. Erad co-founder Salem Abu Hamour said the company, founded in 2022, plans to deploy over $100 million in funding to SMEs over the next year.
Stride has been operating from New Delhi since 2019 and has invested in over one hundred companies, including Indian grocery delivery startup Zepto. Zepto is reportedly planning an initial public offering later this year or in early 2026. Javed said the company expects seven companies in its portfolio to go public "soon."