African mobile gamification startups are attracting millions of dollars of investment. What is the reason behind this?
With the number of African gamers in the mobile sector projected to reach 186 million in 2022 - a significant increase from an estimated 77 million seven years earlier - the potential for growth in the gaming startups on the continent is attracting millions of dollars in investment, sparking optimism and excitement among investors.
African gaming platforms are reporting an increase in investor activity. This indicates investor confidence in the continent's growing reputation as a market for the gaming industry.
South African gaming startup Carry1st, founded in 2018, recently achieved a significant milestone by raising $27 million in a preliminary Series B round, the largest-ever raise for a startup in Africa. This success story is a testament to the continent's potential and is instilling a sense of pride and confidence in the African gaming industry.
The funding follows the company's success in 2022, when its game “President,” which the company developed with gaming gas pedal CrazyHubs, made it to the top download leaderboards in America.
CEO Cordell Robbin-Coker said 2022 was a year of significant growth, but the company decided to improve continuously. The latest fundraiser is backed by heavyweight gaming venture capital firms such as Bitkraft, a global investment platform for gaming, Web3, and immersive technologies, and Andreessen Horowitz, a US venture capital firm.
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According to the study covering all sub-Saharan countries between 2015 and 2021, the number of mobile gamers on the African continent grew tremendously, eventually reaching 186 million. It was found that 95 percent of gamers use smartphones.
Among these millions of players, an increasing number of people are interested in gambling entertainment. The iGaming industry is showing high growth on the continent. The African market, previously neglected by major global operators, is being actively explored by well-known brands. A quick analysis of the search results reveals such companies as 1win, Melbet or Megapari.
One of the key attractions of this gaming direction is its simplicity and accessibility. Questions about how to register on Melbet are straightforward, reflecting the platform's user-friendly interface. With just a few fields to fill and a password to create, users can gain access to thousands of games directly from their PC or phone in less than a minute, providing a comfortable and convenient gaming experience.
In January, Egypt-based cybersports platform Gbarena entered into an agreement whereby it acquired Tunisia-based Galactech in a share swap deal. The amount of this deal was $15 million. The agreement helps the platform enter the promising North African market, as the company expects to close Series A funding later in the year with foreign investors from the U.S. and beyond.