Weekly News Digest #32

Hi all,

We’re working on an insightful research piece for you, set to be released in a few days, so there’s no featured analysis this week. However, you can still find a breakdown of the 15 deals from the previous week in the “Notable Transactions” section below!

We thank MY.GAMES and Xsolla for supporting this digest.

MERGERS & ACQUISITIONS

India-based digital gaming and esports company Nazara Technologies (NSE: NAZARA) has acquired UK-based mobile games developer Fusebox Games for $27.3m in an all-cash transaction. This acquisition aligns with Nazara’s strategy to increase gaming as a significant portion of its Revenue. In 2023, Fusebox reported $10.4m in revenue with an EBITDA margin of 13.4%. From Jan’24 to Jul’24, the company’s revenue and EBITDA margin were $13.9m and 28.7%, respectively.

Hungary-based outsourcing games development company Amber has acquired Colombia-based games development studio Mad Bricks for an undisclosed sum. This acquisition is part of the company’s strategy for non-organic growth, which involves incorporating external studios and expanding into the LATAM market. Both companies previously collaborated on several projects.

US-based sports investment company DCB Sports plans to acquire UK-based esports gaming company Guild Esports (LSE: GILD) for an undisclosed sum. Both organizations have signed a Letter of Intent. The deal comes amid Guild Esports’s financial challenges, including a low cash position and high liabilities.

US-based sports and media company Absolute Sports, a subsidiary of Nazara Technologies (NSE: NAZARA), plans to acquire all the assets of US-based information platform Deltias Gaming for $900k in an all-cash transaction. Absolute Sports will finance the acquisition using its cash reserves.

UAE-based social gaming ed-tech company PiP World has acquired the game StockRise for an undisclosed amount. StockRise, the game in multiplayer platform Roblox, will be integrated into PiP World’s blockchain-based play-to-earn ecosystem.

VENTURE FINANCING

South Korea-based Hybe IM, a subsidiary of media conglomerate Hybe, has secured $80m in a funding round led by Makers Fund, with participation from IMM Investment and Hybe. The funds will be used to expand Hybe IM’s capabilities as a full-service game company, including global expansion and in-house game development. The company is already realizing this strategy with its recent investment in the South Korea-based mobile games developer Action Square in Feb’24.

Cayman Islands-based web3 games developer Moonveil Entertainment has secured $9m in a pre-Series A funding round from Spartan Group, Gumi Cryptos Capital, HashKey Capital, Animoca Ventures, Hivemind, and Mask Network. The funds will fuel the company’s growth, infrastructure, and new experimental projects. Moonveil Entertainment provides an environment for hosting blockchain game development.

US-based web3 gaming infrastructure company Cartridge Gaming Company has secured $7.5m in a Series A funding round led by BITKRAFT, with participation from Fabric Ventures, Dune Ventures, StarkWare, Primitive Ventures, and Ergodic. The funds will be used for team enhancement and company growth. Cartridge Gaming will also continue expanding its ecosystem with new tools, including the open-source development tool Dojo 1.0.

US-based web3 games developer Curio has raised $5.7m in a funding round led by Bain Capital Crypto and SevenX Ventures, with participation from OKX Ventures. The funds will support the development and expansion of the company’s first title, Duper. This round follows a $2.9m raise in Feb’23.

Finland-based games developer Social First has secured $4.2m in a Seed funding round led by Crowberry Capital, with participation from Business Finland and Play Ventures. The funds will support the development of an unannounced title, a cross-platform social MMO slated for release in late 2024.

US-based mobile technology company Reforged Labs has secured $3.9m in a Seed funding round led by DCM Ventures, with participation from Y Combinator, Epakon Capital, Goodwater, and a group of angel investors. The company is developing proprietary AI technology, GenAI, which automates video ad generation, management, and analytics for mobile game developers.

US-based gaming tech company nunu.ai has secured $2m in a pre-Seed funding round from a16z Games Speedrun and several angel investors. The funds will support the development of the company’s primary product, an AI that simulates human gameplay for game testing.

Ireland-based mixed reality games developer MixRift has secured $1.6m in a pre-Seed funding round co-led by Outsized Ventures and Underline Ventures, with participation from SOSV and various angel investors. The funds will fuel the development and publication of new mixed-reality titles. The company has previously developed and released Hell Horde and Fractured.

Sweden-based PC & Console games developer Chamo Games has secured undisclosed funding from Lakestar, Sisu Game Ventures, and Griffin Gaming Partners. The capital will support the development of the company’s debut title, Project Mercury, a ‘non-lethal’ FPS. The studio is founded by the veterans from IO Interactive, Riot Games, Plarium, Ubisoft, and CD Projekt Red.

US-based games developer Second Dinner Studios plans to invest an undisclosed sum in Ireland-based tech company W4 Games. The companies have established a multi-year strategic partnership, which includes Second Dinner’s adoption of the Godot Engine for the development of a new game.

FUNDRAISING

US-based browser games platform Arkadium has launched a $1m publishing fund to support browser game developers. Additionally, the company has announced a partnership with Sony Pictures Entertainment to release the Who Wants to Be a Millionaire? game.

Web3 incubation fund Gam3Girl Ventures has raised an undisclosed sum from US-based VC fund BITKRAFT. The funds will be used to finance web3 game developers. Since its launch in Jul’24, Gam3Girl Ventures has supported several Web3 games, including Blocklords, Infairy Labs, Metacene, Party Icons, Space Nation, Top Goal, and Ultivese.