Merit, a leading company in customer and engagement technology, has announced an oversubscription in its latest funding round, raising $12 million against an initial goal of $5 million. The pre-Series B funding was led by Alistithmar Capital i-Cap, with participation from existing Series A investors, including Tech Invest Com and Hambro Perks Oryx Fund.
This achievement builds on Merit’s earlier Series A investment of $5 million in 2021, which saw contributions from Tech Invest Com, Impact46, Arzan VC, Hambro Perks Oryx Fund, and several prominent regional angel investors. The successful funding round reflects the dedication and hard work of the Merit team and board members. The company plans to use the new funds to roll out refined innovations and leverage insights from the surge in customer interactions experienced in 2023.
In 2023, Merit recorded significant growth, with a cumulative growth rate exceeding 60% and an 80% increase in its user base. The company launched more than 100 instances across 20 additional countries. Merit operates globally across over 160 countries, collaborating with upwards of 6,000 brands. The company has had a substantial influence in Saudi Arabia, distributing over a million rewards and gifts in 2023 alone. Looking ahead, Merit aims to triple this number by 2024.
Julie Barbier-Leblan, CEO of Merit, expressed her positive outlook, stating, “We are feeling optimistic about our progress on both international and regional fronts. As we look ahead, we have exciting objectives on the horizon for the coming years. Our increased involvement in Saudi Arabia’s tech innovation ecosystem is something we are particularly pleased about. We anticipate a busy year ahead as we prepare to launch strategic projects. We recognize the immense market opportunity that awaits us, and we’re confident that our proprietary engagement solutions will meet the needs of our users.”
Regarding the successful funding round, Barbier-Leblan praised Alistithmar Capital i-Cap’s reputation, noting its recognition by World Finance as the best investment management company in the Kingdom of Saudi Arabia in 2023. Alistithmar Capital i-Cap is the esteemed investment arm of the Saudi Investment Bank (SAIB).
She also emphasized the pivotal role of SAIB, a prominent financial institution known for its history of driving growth and achieving success. SAIB’s ownership of American Express Saudi Arabia serves as a testament to their ability to spearhead significant advancements in the financial sector, further propelling Merit’s journey of growth and development. SAIB’s investment in Merit marks the first investment of the newly launched SAIB Venture Studio, which aims to launch new initiatives in technology and financial technologies, leveraging SAIB’s capabilities.
Faisal Al-Omran, CEO of the Saudi Investment Bank, elaborated on the SAIB Venture Studio, stating, “This strategic collaboration with Merit aims to launch innovative digital solutions to the market. It comes as an outcome of the untiring efforts by SAIB Venture Studio to invest in innovative technologies and fintech companies and launch a stream of initiatives in fintech and loyalty programs. SAIB Venture Studio is an innovative platform and a digital factory for developing ideas provided by SAIB. It has achieved many targets since its inception and is striving for more and more. We boast our loyalty history as one of the first banks in the Kingdom to launch a digital loyalty programme. Our good track record with innovation partners, technology, and good synergies with many fintech partners, such as this strategic partnership with Merit, definitely contributes to boosting our leadership.”
Merit and the Saudi Investment Bank recently celebrated the investment and strategic partnership with a signing ceremony held at the Four Seasons Riyadh.