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Direct-to-consumer (DTC) Platform Appcharge Secures $26M

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Direct-to-consumer (DTC) Platform Appcharge Secures $26M

Appcharge raises $26M in Series A funding to enhance its direct-to-consumer platform, helping mobile game studios increase revenue and player engagement through innovative payment solutions.

By Eliza Crichton-Stuart author avatar

By Eliza Crichton-Stuart

Updated November 27th 2024

Direct-to-consumer (DTC) Platform Appcharge Secures $26M

Appcharge, a direct-to-consumer (DTC) platform specializing in mobile games, has announced a $26 million Series A funding round. The round was led by Creandum, with participation from Supercell, BITKRAFT Ventures, and Moneta Ventures, as well as existing investors Play Ventures, Glilot Capital, and angel contributors.

About Appcharge

The company plans to use the funding to scale its white-label offerings, catering to the growing demand for integrated payment solutions that enhance revenue and player engagement for game studios. Appcharge provides mobile developers with tools like branded web stores, global payment systems, and SDKs for in-app payments. Its platform supports over 500 payment methods and 80 currencies, enabling developers to monetize effectively without building in-house DTC systems.

Direct-to-consumer (DTC) Platform Appcharge Secures $26M

Direct-to-consumer (DTC) Platform Appcharge Secures $26M 

A Strategic Shift in Monetization

The rise of DTC solutions is reshaping mobile gaming, particularly as developers face challenges with traditional monetization methods. A recent report from Mistplay highlights that players often quit games due to excessive in-game ads or monetization strategies that feel exploitative, such as “pay-to-win” models. DTC platforms like Appcharge offer an alternative, allowing developers to sell items and virtual currency directly to players.

This approach not only enhances user experience by avoiding disruptive ads but also allows studios to retain more of their revenue. Appcharge’s CEO, Maor Sason, emphasized this shift, stating, “The gaming industry is undergoing a major transformation as DTC models gain momentum, driven by new regulations targeting traditional app stores along with rising user acquisition costs. Today’s publishers have a need to go direct-to-consumer. Everybody wins. Players get more value for their money and an experience that compliments gameplay, and publishers increase revenue and form stronger connections with players.”

Mistplay Advertising.jpg

Mistplay Report on Advertising 

Opportunities for Mobile Game Developers

The increased focus on DTC models comes as regulatory scrutiny intensifies over app store policies, particularly concerning revenue shares taken by platforms like Apple and Google. Carl Fritjofsson, a general partner at Creandum, likened Appcharge to “the Robinhood of mobile gaming,” redistributing revenue from app store giants to developers. He also highlighted the company’s rapid growth, noting a 3x increase in sales over the last quarter.

For mobile game studios, platforms like Appcharge offer a comprehensive solution to challenges in monetization, retention, and user acquisition. By integrating global payment methods and providing customizable tools, Appcharge enables developers to focus on creating engaging games while optimizing revenue streams.

As the DTC model gains traction, Appcharge is positioned as a key player in empowering developers to regain control over their monetization strategies. With its latest funding, the company aims to continue supporting the evolving needs of the gaming industry while helping developers foster deeper connections with their player base.

Source: GamesBeat


Investments

updated:

November 27th 2024

posted:

November 27th 2024

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