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Homegrown game developer UMX Studio secured a USD 4.5 mn investment from Accel-backed Indian game investor Jetapult, in an allcash transaction, according to a press release. The agreement sees Jetapult uptake an undisclosed “major stake” in the Saudi mobile game developer. This is Jetapult’s first investment in the MENA region, the statement says.
What they’re getting: In addition to the investment, Jetapult will also assist UMX Studio in expanding its portfolio of games, boost access to international markets, and tap new genres, the statement said.
Details are scant: UMX Studio’s ownership structure following the investment remains unclear. The statement also did not disclose additional details on how the recent funding will be used.
About UMX Studio: Founded in 2014 by Ali Alharbi (LinkedIn), the studio develops mobile games with a focus on Arabic content. The outfit’s games have so far garnered upwards of 70 mn downloads with the firm seeing steady y-o-y growth in profitability on the back of its popular gaming portfolio.
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Saudi’s gaming sector is taking off: The local gaming sector is expected to rake in some USD 998.2 mn (SAR 3.7 bn) in revenues this year, at an estimated 11% y-o-y growth, driven by a large young population and growing incomes. Mobile games are expected to account for almost half of all spending on games this year at USD 467.6 mn. The sector’s development comes in line with the country’s diversification plans whereby it is expected to contribute SAR 50 bn to the national economy by 2030.
