Proceeds from the Series A round of financing, will be used by the two year-old Bengaluru-based company to expand its team, and developing fresh content. This is the second round of investment by IDG Ventures in PlaySimple, having led a $500,000 seed round in the company in early 2015.
“Gaming is a huge market internationally and a very competitive one. We have known the PlaySimple team for over a year and have been amazed by the growth they have got in a very short period of time,” said Mayank Khanduja, principal at SAIF Partners.
Boutique investment bank Khetal Advisors acted as the financial advisor to PlaySimple for the transaction. The Bangalore-headquartered startup had also received $50,000 after being selected to be part of Google’s Launchpad accelerator in June earlier this year.
“Although gaming is considered be a hit-and- miss business, PlaySimple’s formula on building games and their highly data driven/analytical approach have allowed them to be successful,” said Karthik Prabhakar, director and head – Fundraising at IDG Ventures India.
Founded by ex-Zynga employees, Siddharth Jain, Preeti Reddy and Suraj Nalin, along with IIT Bombay alum Siddhanth Jain, PlaySimple largely caters to markets outside of India, namely US, Australia and Canada. It claims to have more than 10 million downloads for its two flagship products, GuessUp and WordTrek.
“Most of the capital will be used for building our team. We currently have about 22 people, and hope to ramp up that number to about 50 by end-2017. We have openings across the board, and are looking to hire product managers and designers,” Siddharth Jain told ET.
According to Jain, the B2C company is targeting a top-line of $5 million-$7 million for the financial year ending March 2017, and expects to be profitable by the end of the current fiscal. For FY 2016, it earned revenue of about $3 million.
The games developed and released by PlaySimple, and which are available on the Android and iOS platforms, as well as on social media platforms, such as Facebook, are free to download, but players will have to purchase virtual goods as they progress. An additional revenue stream is from the advertisements placed in the games.
“We deliver close to half a billion ad impressions every month,” Jain said. According to industry estimates, India’s mobile gaming market is still at a nascent stage, and estimated to be at $40-$50 million, but is growing at a CAGR of 50%.