Astrolabs' Merit Celebrates $12M Funding, Highlighting Female Entrepreneurship In Saudi Arabia

In a recent announcement, Merit, part of the AstroLabs expansion network, revealed a significant financial achievement by raising $12 million in a pre-Series B funding round. This round was notably oversubscribed, with the company initially aiming for $5 million, showcasing its solid positioning within the global technology sector and particularly in Saudi Arabia. This financial milestone follows closely after Merit moved its headquarters to Riyadh, a move facilitated by its participation in the RELOCATE program last year.

The financing round was spearheaded by Alistithmar Capital i-Cap, the investment arm of Saudi Investment Bank. It also saw considerable contributions from existing investors such as Tech Invest Com and Hambro Perks Oryx Fund, who had previously supported Merit during its Series A round in 2021. This round's success is a testament to the company's impressive CAGR growth rate of 60% and an 80% surge in its user base, alongside the introduction of 100 instances in an additional 20 countries.

Merit specializes in providing a comprehensive range of employee and customer engagement tools and technologies. These solutions are crafted to assist businesses in implementing effective retention strategies, adapting to changing client preferences, and boosting conversion rates. Under the leadership of CEO and co-founder Julie Barbier-Leblan, Merit has been acknowledged for its innovation and leadership, with Barbier-Leblan herself being recognized by Forbes as one of the world's Top 20 Women in Tech for two consecutive years.

The company credits AstroLabs, its expansion partner, for playing a crucial role in its rapid growth within the Kingdom. Barbier-Leblan praised AstroLabs for their deep market insights and unwavering support, which have been instrumental in Merit's successful market expansion. This partnership has enabled Merit to explore new opportunities, establish strategic partnerships, and set new standards for engagement solutions in the region.

Over the past year, Merit has achieved notable traction by distributing over a million rewards and gifts in the Kingdom alone in 2023. This achievement has established Merit as a frontrunner in the engagement technology market, with plans to triple this tally in 2024. Barbier-Leblan, as one of the first female foreign investors in the country, emphasized the support for women leaders in Saudi Arabia, reflecting the nation's ambition to leverage women's skills and capabilities as part of its transformative Vision 2030 program.

Merit’s achievements in the Kingdom have been highlighted by AstroLabs during their celebration of expanding 600 high-growth companies to Saudi Arabia this January. Saudi Arabia’s emergence as a global technology hub is reflected in its powerful digital infrastructure and rapid technology adoption, aligning with Vision 2030's goals. The digital market in Saudi Arabia, the largest in the region, was estimated to be worth $123 billion in 2023, showcasing significant growth from $111 billion in 2021.

With a diverse workforce, robust technology stack, and multiple partnerships with industry-leading partners in Saudi Arabia, Merit is poised to drive transformative changes across the Kingdom’s business landscape. These efforts are in line with the Vision 2030 goals to foster an inclusive, diversified economy, further establishing Saudi Arabia as a leading innovation hub.