Accel-backed Jetapult takes major stake in KSA-based UMX gaming studio in an all-cash deal

Accel-backed Jetapult takes major stake in KSA-based UMX gaming studio in an all-cash deal 

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

Riyadh/Dubai, 14th October, 2024: 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 in a multi-million-dollar 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. Saudi Arabia is home to 23.5 million gaming enthusiasts, which accounts for 67% of its population, as per PWC in 2024. Saudi Arabia represents 39% of the Middle East’s gaming revenue from consumer spending and is the fastest-growing market in the region, according to Sensor Tower, 2024

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.”

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About Jetapult:  

Jetapult is the pioneer of a novel Invest & Operate model that provides long-term funding and full-stack support for global mobile game studios across the life-cycle of game development and publishing. Founded by industry experts Sharan Tulsiani (former head of Google Play Games IN & ANZ) and Yash Baid (former Principal at 3one4 Capital), the company is backed by eminent investors like Accel Partners, Fireside, JetSynthesys, amongst others.

Website Link: https://www.jetapult.co/  

About UMX:

UMX Studio is a Saudi game development company that develops top-charting mobile games featuring realistic graphics, engaging gameplay, and cultural resonance for Arabic users. Their games have garnered over 70 million+ downloads to date, showcasing their commitment to providing authentic Arabic content that reflects their culture and values. Regularly featured by Apple & Google as the pioneers of gaming in the region, the company boasts a diverse and experienced team with offices in Riyadh, Dubai, Egypt, and India. 

Website Link: https://umxstudio.co/en/