Saudi Gaming Studio Lambda Studios Raises $1.3M from Merak
Saudi gaming enterprise Lambda Studios has raised 1.3 million dollars in a funding round led by Riyadh-based investment firm Merak Capital, according to waya.media. The capital injection will support the game development and publishing company as it expands its gaming titles across additional commercial storefronts. The developer originated as a personal passion project in Makkah nearly a decade ago, with the co-founders building prototypes from their living room. Formally established as a commercial corporation in 2024 by Sari AlSaedi and Firas AlSaedi, the enterprise has grown into a structured publishing studio.
Multi-Platform Expansion from Roblox Ecosystem to Steam
The studio established its initial commercial presence within Roblox, designing games that engaged millions of active players, according to Merak Capital. The studio is now expanding onto major computer gaming storefronts, including Valve's Steam platform, to introduce its proprietary intellectual property to broader audiences. The platform transition serves as a key market test of whether an established Roblox player base can translate into success on traditional gaming ecosystems. Lambda's growth also points to the potential of platforms such as Roblox as starting points for independent game development businesses, according to waya.media. Merak Capital says two of Lambda Studios' Roblox titles have each passed one million active playtime hours, and its best-known game is the fighting game Bizarre Blox, according to KeeVurds.
Investment Thesis and Intellectual Property Governance
Merak Capital stated that its investment decision was driven by the studio's full ownership of its intellectual property and its disciplined approach to business growth. The venture capital firm believes these structural qualities will allow independent studios to replicate engagement when migrating between hardware platforms. The investment highlights accelerating momentum across the gaming ecosystem in Saudi Arabia, where regional studios increasingly develop original games for international audiences. The studio's next phase will also offer a closer look at how Saudi gaming companies can develop original titles and retain ownership of their intellectual property.
Regional Venture Deployments Across Saudi Gaming Ecosystem
The transaction expands Merak Capital's active deployment pace across regional interactive entertainment startups. In July 2026, the firm invested 1 million dollars in Saudi mobile gaming studio Floaty through its dedicated Merak Gaming Fund. Subsequently in August, the investment manager co-led a 1.45 million dollar funding round in Majestic Mind Games alongside regional venture partner Impact46. The sequential investments reflect rising institutional interest in domestic creative studios capable of building internationally competitive intellectual property. In late 2024, the Merak Gaming Fund was established as an $80 million vehicle set up with backing from the Saudi National Development Fund to focus on early stage gaming studios, according to KeeVurds. In February 2026, Exel by Merak, a Merak Capital subsidiary, said it had concluded Demo Day for its second gaming accelerator cohort, with 17 startups collectively receiving USD 5.1 million from the Merak Gaming Fund.