RIYADH, May 20, 2024 – Riyadh-headquartered rewards and engagement platform Merit has successfully raised $12 million in an oversubscribed pre-Series B funding round. The round was led by Alistithmar Capital i-Cap, the investment arm of The Saudi Investment Bank (SAIB), with participation from existing investors, including Saudi’s Tech Invest Com and Hambro Perks Oryx Fund, The startup had initially aimed to raise $5 million.
This investment marks the first for SAIB‘s newly launched SAIB Venture Studio, established to develop innovative technology and financial technology initiatives leveraging SAIB’s capabilities. “SAIB funding into Merit is the first investment of the newly launched SAIB Venture Studio, which has been set up to launch new initiatives for customers in technology and financial technologies, leveraging SAIB’s capabilities,” the statement noted.
Founded in 2016 by Julie Barbier-Leblan, Merit provides businesses with gifting, rewards, and engagement solutions for both customers and employees. Initially based in Dubai, Merit relocated its headquarters to Riyadh in 2023.
Merit’s flagship product is a white-labeled loyalty and rewards marketplace. This platform allows enterprises to create customized rewards and incentive programs for their customers and employees, enabling end-users to purchase rewards and incentives using points and/or cash. Merit boasts over 6,000 retail and service partners from more than 100 countries, offering rewards from various industries, including hospitality, retail, travel, and health.
The startup also operates Rewardsby, a SaaS platform enabling businesses to access, buy, and send rewards to their customers or employees for a monthly fee, plus a 3 percent processing fee on each reward or gift sent. Another platform, GiftCardsBy, allows businesses to sell customizable gift cards both online and offline, with monthly fees starting at $25.
Through its extensive partner network, Merit also serves consumers directly via GiftiGlobal, which offers over 4,000 online gift cards, including options from Ikea, Danube, Al Nahdi Pharmacy, Noon, Talabat, and Anghami.
Merit has reported significant growth, with over 1,000 clients utilizing its products and services. In 2023, the company grew its user base by over 80 percent and its overall business by 60 percent, distributing over a million rewards and gifts in Saudi Arabia alone.
Julie Barbier-Leblan, Founder and CEO of Merit, expressed optimism about the company’s future. “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.”
Faisal Al-Omran, CEO of The Saudi Investment Bank, commented on the strategic collaboration. “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.”
