Next-Gen Global Engagement Tech Leader, Merit, Secures $12M, Surpassing $5M Goal in Oversubscribed Pre-Series B Financing

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Next-Gen Global Engagement Tech Leader, Merit, Secures $12M, Surpassing $5M Goal in Oversubscribed Pre-Series B Financing

Merit, a leading company in customer and engagement technology, has announced the successful completion of its latest funding round, raising $12 million, far surpassing its initial goal of $5 million. The pre-Series B round was led by Alistithmar Capital i-Cap and saw strong participation from existing Series A investors, including Tech Invest Com and the Hambro Perks Oryx Fund.

This impressive achievement builds on Merit's earlier Series A investment of $5 million in 2021, which was backed by Tech Invest Com, Impact46, Arzan VC, Hambro Perks Oryx Fund, and several prominent regional angel investors. The substantial oversubscription in this latest round underscores the dedication and hard work of the Merit team and its board members. The company is now poised to roll out its refined innovations, drawing from the surge in customer interactions experienced in 2023.

In the past year, Merit has seen remarkable growth, boasting a cumulative growth rate exceeding 60% and an 80% increase in its user base. The company launched over 100 instances across 20 new countries in 2023 alone. Currently operating in more than 160 countries and collaborating with over 6,000 brands, Merit has made a significant impact, particularly in Saudi Arabia, where it distributed more than a million rewards and gifts last year. The company aims to triple this number by 2024.

CEO Julie Barbier-Leblan shared her optimism about the company's future, stating, "We are feeling optimistic about our progress on both international and regional fronts. We have exciting objectives on the horizon for the coming years, especially with our increased involvement in Saudi Arabia's tech innovation ecosystem. 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."

Barbier-Leblan also highlighted Merit's delight in surpassing its funding targets, praising Alistithmar Capital i-Cap for its esteemed reputation. Recognized by World Finance as the best investment management company in Saudi Arabia for 2023, Alistithmar Capital i-Cap is the investment arm of The Saudi Investment Bank (SAIB).

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 is a result of the untiring efforts by SAIB Venture Studio to invest in innovative technologies and fintech companies, and to launch a stream of initiatives in fintech and loyalty programs. Our good track record with innovation partners and technology synergies with many fintech partners, such as this strategic partnership with Merit, definitely contributes to boosting our leadership."

The recent funding into Merit marks the first investment of the newly launched SAIB Venture Studio, set up to launch new initiatives for customers in technology and financial technologies, leveraging SAIB’s capabilities. SAIB's historical ownership of American Express Saudi Arabia further underscores its capacity to drive significant advancements in the financial sector.

Merit and The Saudi Investment Bank celebrated their investment and strategic partnership with a signing ceremony held at the Four Seasons Riyadh, marking a pivotal moment in their joint effort to enhance customer engagement through innovative technology solutions.