Lambda Studios, a Saudi startup specializing in game development and publishing, has announced the successful raising of $1.3 million USD. This investment round was led by Merak Capital, an investment firm based in Riyadh, while the remaining participating investors or the specific funding stage were not disclosed.
The company was officially founded in 2024 by founders Sari and Firas Al-Saadi, though the project's roots date back nearly a decade, having started as a personal project in the city of Makkah before evolving into a commercial entity specializing in the gaming industry.
What is changing practically?
Lambda Studios has long focused on developing games within the Roblox environment, where it has succeeded in attracting millions of players. With this new funding, the company seeks to break the single-platform barrier by expanding into other global platforms, most notably Steam.
The technical and strategic essence of this shift lies in the studio's desire to build games based on its own intellectual property (IP), rather than limiting itself to developing content within existing platforms. This approach gives the company greater control over its digital assets and a broader ability to reach a diverse global audience through independent platforms, thereby enhancing its sustainability in the competitive gaming market.
Context of investment in the Saudi gaming sector
This investment reflects the growing trend of Merak Capital toward supporting startups in the Kingdom's gaming sector. This step is part of a series of investment moves by the firm in this field; Merak Capital invested $1 million in Floaty Studio in July 2026 and participated in a $1.45 million funding round for Majestic Mind Games in August of the same year.
These successive investments aim to strengthen the portfolio of Saudi companies working on developing original intellectual property targeting international markets, which contributes to the growth of the gaming technology ecosystem in the region.