SaaS Startup Lucidya raises $6M Series B
KSA-based CXM software solutions provider Lucidya raises $6M to expand its services across MENA
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Saudi-based customer experience management platform Lucidya has successfully raised $6M in its latest funding round. The Series Bround was led by Rua Growth Fund with participation from M.A.L Ventures and AlRashed Group, as well as other global VCs. Existing Lucidya investors also participated in the round, including Venture Souq.
Founded in 2016, Lucidya’s solutions empower organizations to understand and better serve their customers by analyzing interactions across different online channels in one consolidated platform. Powered by proprietary Artificial Intelligence (AI) and Arabic Natural Language Processing (NLP) technologies, all captured interactions are deeply analyzed to extract insights that help businesses in making data-driven decisions.
The Enterprise Software sector in Saudi Arabia showed its first promising signs when 5 deals crossed the $20M in 2018 mark in funds over the full year. This funding surge was mainly due to Unifonic raising its first $21M in Series A while 4 other startups close Early-Stage rounds including Qoyod, the automated invoicing and accounting solutions provider, and SallaApp, the E-commerce multi-system integrator. Following a consecutive YoY gradual growth, the Enterprise Software sector crossed the $8M mark over 7 deals in 2020, without any ($10M+) deals which bode well for the sector especially when exiting SaaS startups raised return fundings including SallaApp, Qoyod, UnitX, and Munjz. In 2021, and with Unifonic’s $125M Mega Deal, the enterprise software sector took a strong turn and opened the floor for sizable investments such as this one.
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This round comes after an outstanding performance by the B2B SaaS company, which managed to serve over 100 enterprise customers in more than 6 countries, fueling its annual recurring revenue (ARR) growth 5x year-over-year and making it among the top 10% fast-growing B2B SaaS companies globally, according to the industry’s benchmark. In light of this platform-boosting investment, Founder/CEO Abdullah Asiri commented, “We are on a mission to revolutionize customer experience in the MENA region. We are leveraging our Arabic-tailored AI to bridge the gap between businesses and their customers and make customer voices heard loud and clear. Seeing that brands using Lucidya enjoyed an improvement of 200% in customer satisfaction, on average, indicates that we are on the right track but we are not there yet. This funding will enable us to expand our offering and bring it to more markets, enabling more businesses to reap the benefits of AI-powered Customer Experience Management.”
The global market for marketing technology solutions (MarTech) is estimated to be worth $344.8bn in 2021, a figure which underlines the growth of the industry and the massive role that MarTech now plays in almost every organization. With such a growing market, the opportunity for Lucidya and its customers is undeniable. While almost every business is exploring how they can use Customer Experience as a competitive advantage, very few are able to do so effectively today due to the lack of technologies that understands Arabic interactions. Asiri elaborated on the driver of Lucidya’s adoption and the critical impact of its solutions “COVID-19 accelerated digital transformation and changed consumers’ behavior. Nowadays, most individuals interact with businesses through online channels (e-stores, social media, chat, emails, calls, etc.) and this trend is only expected to grow with time. This paradigm shift has resulted in an enormous and rapidly growing global customer demand for an omnichannel solution that leverages these interactions to improve customer retention.”
The latest fund will be used to expand the company’s product offering to provide a wider range of values to its customers. Turki Aljoaib, Managing Partner at Rua Growth Fund shared the need and high hopes for this home-grown venture, “We at Rua Growth Fund believe that both, the Saudi market and the MENA region, have been underserved with technology solutions and services tailored to the local market. This has left significant gaps and opportunities for digitization that can only be successfully filled by local players who understand the needs of the market and know how to deliver value to their customers. Lucidya, which is based in Saudi Arabia, is a prime example of this. Having developed their technology in-house by and for Arabic speakers, they serve the needs of the global market while also demonstrating the Kingdom’s potential of innovative tech entrepreneurs, which promises to be a key part of accelerating the Kingdom’s growing leadership in MENA’s tech revolution.”
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