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Appcharge’s $26M Funding: A Direct Challenge to Google And Apple

As Apple and Google face scrutiny from regulators and publishers regarding the monopolistic nature of their app stores, a new Fintech startup, Appcharge has successfully secured funding to create an alternative for game developers looking for different monetization options. 

Appcharge positions itself as a sort of ‘Shopify’ for the gaming industry and as a platform allowing publishers to create their own websites to directly sell gaming currencies and other virtual items to consumers. The company now has raised $26 million achieving a valuation of $100 million to support its growth.

This funding round is spearheaded by Nordic VC Creandum, a prominent early investor in Spotify which has been critical of the app stores and has played a major role in pushing regulators to scrutinize Apple specifically. Other participants consist of mobile gaming giant Supercell, Moneta Ventures, VC Ventures and former backers Play Ventures and Gillot Capital along with several others. 

The SEO And founder of Appcharge, Maor Sason, has refrained from commenting on whether Supercell is among its clientele. The company claims that they have a customer base in the tens and right now is processing approximately $200 million in purchases annually. 

The main technology at the heart of Appcharge aligns with the headless commerce movement, the platforms within this space have businesses with tools to create their own e-commerce websites through which they can offer greater customization than standard website builders. Along with customization, they can also offer sophisticated commerce functionalities that are available through APIs. 

The funding is particularly significant as gaming startups are right now facing issues in securing investment amid stagnant market growth. As reported by Konvoy Ventures, the total number of deals in the previous quarter dropped by 14% as compared to the quarter before, also the early stage of investments has reached the lowest level in five years. The gaming market has only seen a growth of about 2% over the past year.

Posted by

Ainsley Whalen

Tech and Internet Writer