Bengaluru-based gaming investment company Jetapult, backed by the likes of Accel and Fireside Ventures, has picked up a significant stake in Saudi Arabia-based game developer UMX Studio through an all-cash transaction of $4.5 million (about Rs 37.8 crore). This marks the company’s first investment in the Middle East and North Africa (MENA) region.
Along with acquiring equity, Jetapult will provide capital to expand UMX Studio’s existing portfolio, increase its audiences across markets and build games in new genres. Jetapult’s team of gaming experts will also support UMX Studio in enhancing user acquisition, scaling monetisation efforts and adopting advanced analytics and artificial intelligence tools, senior executives said.
Jetapult, led by Sharan Tulsiani and Yash Baid, was launched by digital entertainment and technology firm JetSynthesys in 2022 to support game development studios through an invest and operate model in markets such as Southeast Asia, MENA, Eastern Europe and South America.
The company has committed to invest $100 million over the next five years.
“This is part of Jetapult’s broader plan to invest in a diverse portfolio of gaming studios in emerging markets and that is where the growth continues to be, especially in the gaming industry,” Tulsiani, who previously led gaming at Google Play Asia – India and ANZ markets, told ET.
Prior to this, Jetapult invested in Mumbai-based game publishing company Holy Cow Studio and intends to invest in four-five companies annually.
“Our focus is to have a portfolio of companies targeting high average revenue per user markets globally, and the Middle East is an upcoming hub. UMX is one of the first players to come out of that market and to build very strong culturally resonating games for that particular audience. We believe that adding more titles and genres under a cohesive umbrella of companies will make sense for the next five to seven years,” said Baid.
This investment comes amid a surge in overseas acquisitions by gaming firms. For example, Mumbai-based Nazara Technologies recently announced it has set aside around Rs 830 crore for mergers and acquisitions in markets such as India, Europe and North America. The company’s notable acquisitions include Comic Con India, marketing firm Publishme (focused on West Asia and Turkiye), Singapore-based events firm Branded and Turkish esports company Ninja Global.
Source: Economic Times