Accel-backed Jetapult takes major stake in KSA-based UMX for $4.5mn in an all-cash deal

Marks a significant investment by a Global strategic investor in one of MENA's pioneering game development studios

DUBAI, UAE, Oct. 14, 2024 /PRNewswire/ -- Accel-backed Jetapult, a global strategic investment company in the gaming landscape, takes a major stake in UMX Studio, one of the first homegrown game development studios in Saudi Arabia. The company invested $4.5mn in an all cash transaction.

In addition to capital, UMX Studio will get help to support the expansion of their existing portfolio, expand their audiences across global markets, and build games in new genres.

UMX Studio founded by Mr. Ali Alharbi in 2014, develops high-quality mobile games featuring stunning graphics, engaging gameplay, and suitability for all ages. Their games have garnered over 70 million downloads till date, showcasing their competence in developing high-resonance Arabic content that reflects their culture and values.

This is Jetapult's first investment in the MENA region, with further investments planned in markets like South East Asia and Europe.

Speaking on the occasion, Sharan Tulsiani, the Co-Founder and CEO of Jetapult, said, "Jetapult's investment in UMX goes beyond providing capital; we bring a wealth of proven gaming expertise and cutting-edge technology to this partnership.

Sharing a unified vision with Ali, this collaboration will not only unlock UMX's global potential but also contribute to the growth of local talent and enhance gaming experiences across the Middle East's vibrant development ecosystem"

The investment comes in the context of the exponential growth of the gaming and e-sports sector in the MENA region, and with the Saudi National Gaming and Esports entity aiming to make the country a global gaming hub by 2030. In 2023, gaming revenues in the MENA were approximately $7.2 billion, with Saudi Arabia emerging as a key growth player and is home to 23.5 million gaming enthusiasts.*

Mr. Ali Alharbi, Founder UMX, stated, "This significant investment from Jetapult not only marks a milestone for UMX Studio but also heralds a new era for the Saudi Arabian gaming industry. We are thrilled to partner with a globally recognized leader in the gaming investments space. This collaboration will not only accelerate our expansion but also empower us with advanced tools and expertise. In partnership with Jetapult we are committed to setting new benchmarks and establishing a solid foundation for nurturing and expanding Saudi Arabia's gaming talent."

Jetapult, co-founded by Sharan Tulsiani and Yash Baid, is backed by Accel Partners, Fireside, JetSynthesys, amongst others. The company aims to support game studios with a scientific approach to sustainable growth in markets such as Southeast Asia, MENA, Eastern Europe, and Latin America, through a $100 million commitment over the next five years. Jetapult employs a pioneering "Invest & Operate" (I&O) model, which combines strategic capital with hands-on operational support.

UMX has shown consistent year-over-year growth in profitability, driven by a portfolio of games that consistently top the Apple and Google charts in the region.

Jetapult is committed to UMX's vision of fostering the Saudi Arabian market to become a hub for game development by harnessing Jetapult's strategic expertise and UMX's local talent and cultural nuance.

Mr. Barath Shankar Subramanian, Partner, Accel, stated, "Jetapult's investment in UMX Studio marks a significant milestone in expanding its presence in emerging markets like MENA, where gaming and game development is rapidly gaining momentum. Jetapult's unique 'Invest & Operate' model, which was the core of our investment thesis, has the potential to transform the global gaming ecosystem, enabling growth for gaming studios and the exploration of new gaming genres."

*As per PWC in 2024

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