Axon Partners Group, has made a third round investment in social gaming company Akamon Entertainment, bringing the total invested in Akamon to date to nearly USD 4m, with Axon being the majority investor.
Axon’s renewed investment is to support Akamon’s continued international expansion, especially into Latin America, with more than 40% of Akamon’s current revenue coming from the area. The investment will also continue to increase non-portal diversification, which now makes up 20% of Akamon’s revenue.
Akamon Entertainment has become the leading social gaming company in Latin America and Southern Europe with 20m users, and has doubled its monthly active users since 2013 to an average of over 2.5m. Akamon has almost 500k daily active users and is now 10 times bigger than the main competitor in its market. It has predicted revenues of USD 20.4m in 2014 and is currently on track to achieve these targets.
Akamon has also recently announced expansion plans; opening an office in Tel Aviv, Israel, through the acquisition of a local social gaming company, which has accelerated its mobile presence in 2014, and adds to its existing offices in Valencia and Barcelona. The fast-growing start-up has also brought industry veteran Alex Cohen on board as Chief Product Officer, as part of its 70-strong-team. Mr. Cohen has 10 years’ experience in social gaming and has worked for high-calibre companies such as QuickSpin and American company International Game Technology.
The rapid success of Akamon has drawn attention from international players that are looking to enter into the lucrative LatAm and Spanish regions. Akamon’s unique multi-channel distribution model and over 100 portal partners, as well as its broad product portfolio and local product strategy, is an attractive acquisition target for companies that are finding it difficult to develop into LatAm.
Alfonso de León, Managing Partner of Axon Partners Group’s Investment Division comments: “We have been impressed by the rapid growth of Akamon Entertainment into Latin American markets and this further investment will see it continue its exponential growth throughout the region. Now only 20% of Akamon’s players’ database comes from its home country of Spain, a figure that was 90% before our initial investment. This demonstrates the potential of these markets for the social gaming industry.”
Axon’s strategy in Spain involves becoming active investors in technology companies in growth and expansion phases. This strategy is complemented by Axon’s global presence and reputation, especially in Latin America, Europe and Asia, which enables Axon to facilitate international expansion into these markets, and attracts potential co-investors, like in the recent case of iYogi in which Axon co-invested with Sequoia, DFJ, Sap Ventures and Madison India Capital, to bring more than USD 25m to Spain.
Highlighting its dominance, Akamon has repeatedly been named by key industry influencers as among the best digital startups in Europe, including being listed in Europe’s Top 100 Hottest Startups by leading technology magazine, WIRED.co.uk, and being named one of the seven fastest growing startups in Europe by Tech5.