Accel-backed gaming firm Jetapult pumps $4.5 mn into Saudi-based UMX Studio

UMX Studio has developed a portfolio of mobile games like King Of Steering - KOS Drift (in picture), Climbing Sand Dune, and Drift X

Jetapult, a gaming investment startup backed by JetSynthesys and Accel, has invested $4.5 million in Saudi Arabia-based game developer UMX Studio, marking its first investment in the Middle East and North Africa (MENA) region.

The all-cash transaction saw Jetapult pick up a significant stake in UMX Studio, one of the first homegrown game development studios, in the country.

As part of the deal, Jetapult will also provide capital to support the expansion of UMX's existing portfolio, expand its audiences across global markets, and build games in new genres.

Founded by Ali Alharbi in 2014, UMX Studio has developed a portfolio of mobile games that have garnered over 70 million downloads till date with 2.9 million monthly active users across the world. Some of the titles include Climbing Sand Dune, Drift X, and King Of Steering - KOS Drift.

Jetapult’s team of global gaming experts will help boost the studio’s capabilities to enhance user acquisition, scale monetisation efforts, and adopt analytics and artificial intelligence (AI) tools through their invest and operate (I&O) model, the company said in a statement.

"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, CEO of Jetapult.

Alharbi said this investment will not only accelerate the company's expansion but also empower them with advanced tools and expertise.

Tulsiani co-founded Jetapult along with Yash Baid in 2022. The startup was incubated out of JetSynthesys with a corpus of $100 million to acquire and support gaming studios in South East Asia, MENA, Eastern Europe, and Latin America over the next five years. Apart from JetSynthesys, its backers include Accel Partners and Fireside Ventures.

"The people of India and Saudi Arabia have been trusted partners for trade in goods and global expertise for millennia. This strong legacy has been carried forward in the fastest-growing and digital-first market of gaming through Jetapult’s investment in UMX," said Rajan Navani, chairman and managing director of JetSynthesys.

"This partnership of deep expertise and culture will bring together the gaming and esports communities in both these youthful markets," he said.

Jetapult provides long-term funding and full-stack support for global mobile game studios throughout the entire game development and publishing lifecycle. It aims to assist game studios with a scientific approach to achieve sustainable growth in these markets.

Jetapult stated that this investment comes amid the exponential growth of the gaming and e-sports sector in the MENA region, with Saudi Arabia representing 39 percent of the Middle East's gaming revenue from consumer spending. It is also projected to be the fastest-growing market in the region in 2024, according to data from market intelligence firm Sensor Tower.

"Jetapult’s unique invest and 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," said Barath Shankar Subramanian, partner at Accel.

Vinay Singh, co-founder and partner at Fireside Ventures, said that Jetapult's invest and operate model will help gaming companies significantly with the benefits of a global platform. "We believe the future of virtual consumption is closely intertwined with games that will unlock the next phase of online communities and commerce. KSA (Kingdom of Saudi Arabia) is a very exciting geography which is poised for exponential growth both with the twin engines of domestic consumption and global development firing together," he said.