Merit secures $12 mn in pre-series B funding led by iCap

Merit, a Saudi Arabia-based SaaS platform for rewards and employee engagement, has secured $12 million in a pre-Series B round led by Saudi Investment Bank’s Alistithmar Capital i-Cap.

The funding round also saw participation from Tech Invest Com and Hambro Perks Oryx Fund, which previously invested about $5 million in the SaaS startup during its Series A round in 2021.

The Series B funding has exceeded the expected target of $5 million, showcasing the company's strong position in Saudi Arabia’s technology industry. The SaaS rewards and engagement platform, founded by Julie Barbeito Leblanc and Trishan Padiyachi in 2016, is Saudi Arabia’s first women-led tech company. Recently relocated to Riyadh, the platform helps organisations enhance their customer and employee engagement with effective retention strategies.

With the new investment, the company will focus on bolstering its position in Saudi Arabia’s engagement technology market, setting a new benchmark for innovation, and doubling its expansion efforts across diverse sectors, including the already captured e-commerce, IT, BFSI, and airlines.

The SaaS platform has a strategic partnership with AstroLabs for its expansion in Saudi Arabia. Underlining AstroLabs' efforts in Merit’s growth and expansion, CEO and co-founder Julie said, “Their deep understanding of the Saudi and UAE markets, coupled with their relentless support, has been pivotal in our successful market expansion. With AstroLabs by our side, we have been able to tap into new opportunities, forge strategic partnerships, and elevate the standard of engagement solutions in the region.”

She noted, “Being one of the first female foreign investors in the country and one of the first companies part of the RELOCATE program under NTDP, I can confirm that being a woman leader nowadays in Saudi Arabia is supported by the ambition of the country to transform and leverage women leaders’ skills and capabilities in the future.”

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Alex Nicholls, Director of Expansion at AstroLabs, also commented, “Merit has long been renowned for its significant contributions to its clients’ growth and success across the countries where it operates. Building on that foundation, Merit’s recent footprint expansion in Saudi Arabia will cement its position as a market leader by driving the growth of large-scale businesses in the Kingdom’s thriving digital economy, supporting the Vision 2030 goals for an inclusive, diversified economy.”