Merit, a Saudi Arabia-based customer and engagement startup, has raised $12 million as it gears up to roll out its refined innovations, leveraging insights gained from the surge of customer interactions experienced in 2023.
Led by Alistithmar Capital i-Cap with participation from existing Series A investors, Tech Invest Com and Hambro Perks Oryx Fun, the $12 million was an over-subscription against a goal of $5 million in its pre-Series B effort and builds upon earlier Series A investment of $5 million in 2021 with Tech Invest Com, Impact46, Arzan VC, Hambro Perks Oryx Fund, and several regional angel investors.
According to CEO Julie Barbier-Leblan in a statement seen by TechMoran, “Our increased involvement in Saudi Arabia’s tech innovation ecosystem is something we are particularly pleased about. Looking forward, 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.”
In 2023, Merit experienced notable growth, with a cumulative growth rate exceeding 60% and a substantial increase in its user base by 80%, launching more than 100 instances across 20 additional countries.
With a global operation across over 160 countries and collaborating with upwards of 6,000 brands, Merit is currently inviting competitive bids. In Saudi Arabia, Merit distributed over a million rewards and gifts in 2023 alone. Merit also runs Rewardsby, a platform that allows businesses to access, buy and send rewards to their customers or employees, at a 3 percent processing fee. Another platform operated by Merit is GiftCardsBy. which runs both online and offline businesses to sell gift cards to their customers. The businesses can design their gift card and set up the gift card website using the platform.
“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,”CEO at the Saudi Investment Bank, Faisal Al-Omran, elaborated.
Alisthithmar Capital i-Cap is the investment arm of the Saudi Investment Bank (SAIB).