Venture debt giant Stride enters Saudi Arabia and plans to invest $200 million in two years

The Zhitong Finance App notes that venture debt company Stride Ventures is entering Saudi Arabia for the first time and plans to invest $200 million locally within the next two years to take advantage of the country's opportunity to promote new sources of financing.

Stride has invested more than $1 billion in credit in India, Southeast Asia, and the UK, and recently led a round of funding for Saudi fintech company Erad. The company's partner Fariha Javed said the deal marks Stride's first fintech investment in the Middle East and also kicks off its investment push in Saudi Arabia.

In an interview, Javed said that the company plans to provide loans to Saudi companies of various sizes and industries, and plans to provide an additional 50 million US dollars to UAE companies after recently completing its first fund focused on the Gulf region. Stride plans to return the funds to the Middle East later.

“We plan to invest $500 million in the region over the next four years,” Javed said.

As venture capital and private credit are becoming increasingly important in Saudi Arabia, Stride is also expanding its business. All parties, from countries to companies and banks, are seeking alternative sources of funding to help drive Crown Prince Mohammed bin Salman's economic reforms.

As international investors continue to expand their business in the region, GCC countries' and Egyptian private debt is likely to grow at a compound annual rate of 30% over the next five to six years, according to PricewaterhouseCoopers.

Javed said Stride is still in talks with a construction technology company about another deal, but no further details were revealed. Stride led Erad's $33 million funding round, a startup that provides financing to small and medium businesses, and the investment will support Erad's expansion in Saudi Arabia and the UAE.

Erad's co-founder Salem Abhamur said the company was founded in 2022 and plans to invest more than $100 million in SMEs over the next year.

Stride has been operating in New Delhi since 2019 and has invested in over 100 companies, including Indian grocery delivery startup Zepto. Zepto is said to be planning an initial public offering later this year or early 2026. Javed said the company expects seven companies in its portfolio to go public “soon”.