Saudi-based Merit raises $12 million pre-Series B to enhance customer loyalty and rewards platforms

🎁 Say hello to Merit, a Saudi-based startup providing gift, reward and engagement strategies, including gift cards, e-cards, merchandise, employee/customer rewards and online white label gift registry solutions.

And, they just secured a $12 million pre-Series B in an oversubscribed round, surpassing its initial target of $5 million.

• Founded by Julie Barbier-Leblan in 2016, the company relocated its headquarters from Dubai to Riyadh last year, and claims to have over 6,000 retail and service partners from more than 100 countries, offering rewards and incentives across various industries and categories, including hospitality, retail, travel, health, and more.

‍

💰 Investor lowdown: The round was led by Alistithmar Capital i-Cap, the investment arm of Saudi Investment Bank, and saw participation from returning investors such as Tech Invest Com and Hambro Perks Oryx Fund.

• SAIB's funding into Merit is the first investment of the newly launched SAIB Venture Studio, established to leverage SAIB's capabilities to launch new initiatives in technology and financial technologies for customers.

‍

⚙️ Break it down

Merit's flagship product is a customisable, white-labeled loyalty and rewards marketplace for enterprises. Businesses can tailor the platform to their brand, allowing customers and employees to purchase rewards using points or cash.

The startup also offers:

• Rewardsby, a SaaS platform that lets businesses access, buy, and send rewards to customers or employees for a monthly fee. Besides the cost of the reward, Rewardsby charges a 3% processing fee.
• GiftCardsBy, a platform for online and offline businesses to sell custom-designed gift cards. It allows businesses to set up a gift card website to boost revenue. GiftCardsBy is available for a monthly fee starting at $25.
• GiftiGlobal, offering over 4,000 online gift cards. Users can buy gift cards for themselves or others, with options in the UAE including Ikea, Danube, Al Nahdi Pharmacy, Noon, Talabat, and Anghami.

‍

📈 How it’s going

In 2023, Merit claims it achieved over 60% cumulative growth, an 80% increase in its user base, launched more than 100 instances in 20 new countries, and distributed over a million rewards in Saudi Arabia.

‍

🔮 Flashforward

Building on this success, Merit aims to triple its reach in the Saudi market in 2024. The fresh funding will be used to develop its technology to enhance customer engagement.