Jetapult Acquires Stake in UMX Studio

Jetapult Acquires Majority Stake in UMX Studio to Enter MENA Market

SUMMARY

Jetapult has acquired stake in UMX Studio for $4.5 million, marking its first investment in the Middle East and North Africa (MENA) region.

The acquisition aims to expand UMX Studio's portfolio and audience in overseas markets, and develop new game genres using Jetapult's expertise and technology.

The investment is part of Jetapult’s broader strategy to support game studios in emerging markets with a $100 million commitment over the next five years.

Bengaluru-based Jetapult has picked up stake in Saudi Arabia-based game developer UMX Studio for $4.5 Mn (INR 38 Cr) in an all-cash deal, marking the gaming investment company’s maiden bet in the MENA (Middle East and North Africa) region.

Jetapult said in a statement that the investment will aid UMX’s existing portfolio expansion, grow its audience base across overseas markets and enable development of games in new genres.

The company further said that via its ‘Invest & Operate’ (I&O) model, it will provide expertise to enhance UMX’s user acquisition, scale monetisation efforts and implement advanced analytics and AI tools.

“Jetapult’s investment in UMX goes beyond providing capital; we bring a wealth of proven gaming expertise and cutting-edge technology to this partnership with an aim to enhance gaming experiences across the Middle East’s emerging development ecosystem,” said Sharan Tulsiani, cofounder and CEO of Jetapult.

Founded in 2014 by Ali Alharbi, UMX Studio is a game development studio in Saudi Arabia. It claims to have over 70 Mn downloads to date, with its games consistently topping Apple and Google charts in the region.

Meanwhile, Jetapult, co-founded by Tulsiani and Yash Baid in 2021, is backed by Accel Partners, Fireside and JetSynthesys.

The company aims to support game studios in emerging markets such as Southeast Asia, MENA, Eastern Europe, and Latin America through a $100 Mn commitment over the next five years. Jetapult has previously invested in Mumbai-based game publishing company Holy Cow Studio.

According to a report by Analysys Mason, the gaming industry in MENA is expected to reach approximately $4.0 Bn in 2023, with Saudi Arabia accounting for about 40% of MENA’s overall market share. In a similar move, Indian game streaming platform Loco recently sold its majority stake to UAE-based Redwood for $65 Mn to expand into overseas markets.