Games2Win Raises $2 mln, to focus on App Acquisitions
Games2Win today announced USD 2 Million Series C funding from their existing investors Clearstone Venture Partners. They had previously raised USD 5 million in 2007, followed by another USD 6 million round in 2011.
I had a candid chat with Alok Kejriwal, Co-founder and CEO of Games2Win earlier today and he made some interesting points in regards to Games2Win Mobile games app growth and their focus going forward.
Currently , Games2Win is sitting on enough cash (excluding today’s funding) to sustain them for next 12 to 18 months and are close to breaking-even. The funds raised will essentially be used for outright acquisition of games app.
Games2Win currently produces about 40 apps a year, and want to increase this number drastically over next couple of years. However, G2W plans do this via the acquisition route.
In Alok’s view, there are thousands of excellent app developers out there unable to monetize or get traction for their apps in the market. Games2Win plans to target such potential apps and acquire them outright.
Over next 12 months, Games2Win has a target of launching 100 new apps in iOS, Android as well as Kindle Markets. Half of them will be produced internally by G2W, while other half will be done by way of acquisitions.
While there is a general feeling among App developers (especially in India) that mobile apps do not make money (paid or advt. enabled), Alok shared some interesting insights about the monies some of the G2W apps make. One of the apps he mentioned rakes in USD 4 digit amount per day (I did not believe this, and so Alok sent me a report to back-up his claim).
One of the major reasons, why G2W makes money is that they are not in Indian Market at all (I think only 2 percent of their market is from India), where the dynamics are totally different than Western markets. The CPC’s (cost per clicks) on ads and average buys are much higher as compared to India. This is where Games2Win scores heavily.
Overall, Games2Win are quite bullish on Mobile Games app market and are planning to achieve their future growth by moulding themselves into a comprehensive games publishing channel that produces games internally as well as acquires games from external app developers.