Target Information

In Q2 2025, Equivator made a strategic investment of SAR 30 million (approximately USD 8 million) in Related, a pioneering MarTech and Fintech loyalty platform that is transforming how businesses engage with customers across the MENA region. This investment aligns with Equivator's growing fintech infrastructure strategy and signifies a focused effort to create value at the intersection of payments, rewards, and consumer data.

This transaction highlights Equivator's commitment to finding transformative platforms that resonate with Saudi Arabia's Vision 2030 objectives, particularly in areas of digital transformation, financial inclusion, and enterprise empowerment.

Industry Overview

The loyalty market in Saudi Arabia is experiencing rapid expansion, with a compound annual growth rate (CAGR) of 17.2% projected between 2020 and 2024, aiming to reach $842.5 million by 2025. Looking forward, the market is expected to maintain steady growth at 13% annually, potentially reaching $1.37 billion by 2029. This growth indicates both maturity and significant untapped potential, making it an appealing environment for investors.

Saudi Arabia’s loyalty market is undergoing a significant transformation; it has shifted from rudimentary, transactional models to sophisticated, tech-enabled ecosystems. Historically, loyalty programs primarily offered generic discounts with cumbersome redemption processes and minimal digital interfaces. However, the current market is reshaping due to five key trends.

New entrants into Saudi Arabia's loyalty market face intricate structural and regulatory challenges, including stringent transparency, data protection, and compliance requirements. These factors heighten both financial and operational hurdles, especially for smaller or nascent companies. Additionally, the sector is highly competitive, particularly in industries like retail, e-commerce, and fintech, where established brands command considerable consumer trust, complicating differentiation efforts amidst evolving customer expectations for real-time engagement and personalized offerings.

Related's platform effectively addresses these challenges by providing a scalable and regulation-compliant loyalty infrastructure. It offers plug-and-play modules that minimize integration complexities and time-to-market, along with advanced data and AI capabilities aimed at fostering personalized and compliant customer engagement.

Rationale Behind the Deal

Equivator's investment in Related is grounded in a strategic rationale that views loyalty programs not merely as sideline offerings, but as essential business tools that drive growth and competitive advantage. Related's platform allows businesses to create tailored loyalty and rewards programs, affirming customer interactions with their shopping, payment, and engagement processes.

Furthermore, Related's design provides multi-industry applicability without necessitating a full system overhaul for each sector, making it adaptable and cost-effective. Key features such as intelligent reward systems, tiered customer categorizations, and gamification tools showcase the platform's versatility and scalability while ensuring reduced operational complexities.

Investor Information

Equivator is an investment firm dedicated to strengthening its portfolio in fintech and customer engagement sectors. The company's focus is on integrating high-impact investments that reflect its commitment to building foundational infrastructures capable of supporting long-term scalability. With a strategic vision that includes backing innovative platforms, Equivator aims to enhance financial inclusion and digital transformation across the MENA region.

Equivator's framework for investments emphasizes not only financial contributions but also fostering governance, talent cultivation, and strategic engagement to amplify the growth and resilience of its partner companies. This approach ensures that they remain committed partners throughout the investment cycle.

View of Dealert

In assessing the investment in Related, it is evident that this partnership is poised to be a sound investment reflecting current and future market dynamics. The emphasis on building an infrastructure that serves as a backbone for customer engagement aligns perfectly with the shifting landscape of consumer expectations and technological advancements in Saudi Arabia.

Furthermore, Related's focus on modularity and compliance positions it well within a competitive sector that increasingly values transparency and adaptability. This adaptability not only enhances customer loyalty but also offers companies the tools they need to interact meaningfully with consumers.

Equivator's comprehensive support in terms of strategy and governance, combined with Related's innovative offerings, is likely to lead to a mutually beneficial partnership that could yield substantial returns. Moreover, as consumer behavior migrates towards digital-first solutions, investing in a platform like Related positions Equivator ahead of the curve.

Overall, this investment showcases a proactive approach to identifying and nurturing platforms that redefine market standards, ultimately enhancing the broader fintech landscape and aligning with the objectives of Saudi Arabia's Vision 2030.

View Original Article