Merak Capital Launches US$82mn Fund for Gaming Startups

Merak Capital, a KSA-based technology-focused investment firm, has launched Exel By Merak, a SAR306 million (US$81.52 million) gaming fund and accelerator designed to support gaming startups.  

The initiative was introduced on November 17, 2024, at the VOV Gaming Centre in Riyadh, as part of Saudi Arabia’s efforts to position itself as a key player in the global gaming sector. 

The Exel program aims to assist early-stage startups within the gaming ecosystem, including game development studios, gaming technology platforms, publishers, and related services. The accelerator offers equity investment, mentorship, legal and relocation support, and access to necessary tools to help these companies scale and compete internationally.  

In its first accelerator batch, Merak plans to invest in 15-20 gaming startups, focusing on local ventures as well as international ones relocating to the Kingdom, which is home to over 24 million gamers.  

The goal is for these startups to develop at least 15 commercially viable games, contributing to the growth of the gaming sector in the Kingdom.

The accelerator’s structure includes a virtual boot camp followed by a 14-16-week core program, concluding with a demo day and continued support to help ensure long-term success. The program is open to both Saudi-based and international startups seeking funding and business development opportunities.  

In an interview with Inc. Arabia, Faisal Sedrani, vice president and leader of Exel By Merak, outlined the criteria for selecting gaming startups for the accelerator program.  

"We are looking for startups that have a minimum viable product (MVP), which, in the gaming industry, could be considered a "vertical slice,'" Sedrani explained. "This MVP doesn’t need to be lengthy, but it should demonstrate that the applicant has a solid foundation in game development and design. This is crucial, as the curriculum will primarily focus on business fundamentals in the gaming industry, as well as commercialization and monetization strategies."

Sedrani also pointed out that the focus of the accelerator’s curriculum will primarily be on business fundamentals, commercialization, and monetization strategies, all of which are crucial elements for any startup aiming for success in the competitive gaming industry.  

To ensure the success of Exel By Merak, Sedrani revealed that Merak Capital plans to leverage global networks within the gaming industry. "We are already engaged with many international communities from across the world in the gaming ecosystem,” he said. “This engagement is maintained by establishing relationships with key associations in these countries and attending the major events that happen in these hubs. As a result, we are receiving numerous applications from across the world, and we expect to fund many of these startups who are applying to relocate to Saudi Arabia."  

Looking ahead, Sedrani highlighted Saudi Arabia’s ambition to position itself as a global hub for gaming. "The Kingdom of Saudi Arabia intends to be a hub for the gaming industry globally, where game developers, competitors, players, and spectators gather to create a vibrant ecosystem. This is already happening in the eSports arena, and Exel by Merak, among all the other government and private programs and initiatives towards this direction, will play a key part in shaping the Kingdom as a global game development hub.”