Merit Surpasses Funding Goals and Achieves $12M in Pre-Series B Financing

In a remarkable stride forward, Merit, a leader in customer engagement technology, has significantly surpassed its funding goal in its latest pre-Series B round. Initially aiming for $5 million, the company attracted a whopping $12 million. This 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 achievement builds on Merit's prior success in 2021, when it secured $5 million during its Series A round with contributions from Tech Invest Com, Impact46, Arzan VC, Hambro Perks Oryx Fund, and several notable regional angel investors. The latest funding milestone underscores the relentless effort and strategic vision of the Merit team and its board members. The company is now poised to launch refined innovations, drawing on valuable insights from a significant uptick in customer interactions experienced throughout 2023. The Merit team expressed their excitement about continuing their mission to enhance customer engagement with state-of-the-art technology.

The year 2023 was transformative for Merit, marked by a Cumulative Growth Rate exceeding 60% and an impressive 80% increase in its user base. The company launched over 100 instances across 20 additional countries, significantly expanding its global footprint. Merit operates in over 160 countries and collaborates with more than 6,000 brands, demonstrating a strong commitment to delivering value to its international user base and community partners. In Saudi Arabia, Merit has made a substantial impact, distributing over a million rewards and gifts in 2023 alone. Looking ahead, the company plans to triple this number by 2024, reflecting its ambitious growth trajectory.

CEO Julie Barbier-Leblan shares her positive outlook, saying, "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. 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."

Julie expressed delight at the success of the funding round. She praised Alistithmar Capital i-Cap, highlighting its recognition as the best investment management company in the Kingdom of Saudi Arabia for 2023 by World Finance. Alistithmar Capital i-Cap, the investment arm of The Saudi Investment Bank (SAIB), played a pivotal role in this achievement.

SAIB is a prominent financial institution renowned for driving growth and achieving success. Its ownership of American Express Saudi Arabia underscores its capability to lead significant advancements in the financial sector, further boosting Merit's growth and development. This investment in Merit marks the inaugural venture of the newly launched SAIB Venture Studio, an initiative designed to foster new technological and financial innovations by leveraging SAIB’s extensive capabilities.

CEO of the Saudi Investment Bank Faisal Al-Omran, elaborates on the SAIB Venture Studio, “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 endeavouring for more and more. We boast our loyalty history as one of the first banks in the Kingdom to launch a digital loyalty program. Our good track record with innovation partners, technology, and good synergies with many fintech partners - such as this strategic partnership with Merit - contributes to boosting our leadership.”

To celebrate this strategic partnership and investment, Merit and The Saudi Investment Bank recently held a signing ceremony at the Four Seasons Riyadh, marking a significant milestone in Merit's journey towards enhanced customer engagement and technological excellence.