Appcharge’s Recent Funding and Growth in Mobile Gaming Monetization
Appcharge, an innovative Israeli tech company, is making significant strides in transforming how mobile games reach and monetize players. Recently, the company announced a successful Series B funding round, raising a robust $58 million. This round was spearheaded by the renowned U.S. venture capital firm IVP, alongside contributions from the Russian gaming powerhouse Playrix and several existing investors, including Creandum, Play Ventures, Glilot Capital Partners, Smilegate Investment, Moneta Ventures, BITKRAFT Ventures, and Corundum. With these new funds, Appcharge has amassed a total of $89 million in backing to date.
Rapid Growth and Significant Transactions
In a remarkable feat, Appcharge has reported processing over $500 million in annual transactions, showcasing a staggering fourteenfold increase in transaction volume within a single year. This impressive growth trajectory illustrates the rising demand for alternative monetization strategies in the mobile gaming industry. Currently, Appcharge is empowering direct sales for over 100 mobile games, making it an essential player in this competitive landscape.
The Shift to Direct-to-Consumer Models
At the heart of Appcharge’s business model is the increasing popularity of the “direct-to-consumer” approach among mobile game publishers. This shift has been catalyzed by recent legal rulings and policy changes that have reduced the stringent control of app stores over digital transactions. For years, major platforms like Apple and Google have exerted a significant influence, often collecting commissions of up to 30% on in-app purchases.
Embracing the Future of Monetization
Maor Sason, the co-founder and CEO of Appcharge, has emphasized the advantages of the direct-to-consumer model, claiming, “Publishers are increasingly moving to direct-to-consumer as a fundamentally stronger model.” He envisions a future wherein the industry operates not just beyond app stores, but also transcends traditional web stores. This approach promises better economic outcomes for consumer apps and greater flexibility for customers.
Enhanced Profit Margins and Player Retention
One of the standout features of Appcharge’s platform is its ability to allow game publishers to sidestep hefty fees by selling directly through customizable web stores. This integration of services also includes a variety of payment options tailored to enhance user experience. According to Appcharge, clients can expect a notable 35% improvement in profit margins and an increase in player retention rates when using their platform.
New Products to Support Publishers
The funding comes on the heels of Appcharge’s launch of two key products designed to simplify the management of direct-to-consumer operations. These innovations include an iOS Payments SDK and AppDirect, a service aimed at streamlining payment flows. These offerings represent a commitment by Appcharge to enhance compliance and scalability for mobile publishers in a rapidly evolving market.
Company Overview and Workforce
Founded by CEO Maor Sason and General Manager Roei Barassi, Appcharge has grown to employ around 94 individuals, primarily based in Tel Aviv. Remarkably, the company’s influence extends beyond local borders, as it now serves over one-third of the top-grossing mobile games globally. This impressive reach underscores Appcharge’s pivotal role in the future of mobile game monetization.
Appcharge’s journey illustrates the dynamic and evolving nature of the mobile gaming industry, where innovation and adaptability can lead to transformative changes in how games are monetized. With major backing and a clear vision, the company is well-positioned to navigate the complexities of the market and provide valuable solutions for game publishers worldwide.