Indian gaming startup Jetapult, backed by US-based venture capital firm Accel has acquired a major stake in Saudi Arabia's mobile game developer UMX for $4.5 million. 

According to a press statement, the deal is expected to help UMX expand their operations and penetrate into global markets, as well as building games in new genres. 

Jetapult Expanding Its Presence

Jetapult added that this is the company's first investment in the Middle East and North Africa region, with further investments planned in South Asia and Europe in the near future. 

"Jetapult's investment in UMX goes beyond providing capital; we bring a wealth of proven gaming expertise and cutting-edge technology to this partnership," said Sharan Tulsiani, CEO and co-founder of Jetapult.

He added: "Sharing a unified vision with Ali, this collaboration will not only unlock UMX's global potential but also contribute to the growth of local talent and enhance gaming experiences across the Middle East's vibrant development ecosystem." 

Barath Shankar Subramanian, partner at Accel said that Jetapult's investment in UMX marks a significant milestone in expanding its presence in emerging markets like MENA, where gaming and game development is rapidly gaining momentum. 

"Jetapult's unique 'Invest & Operate' model, which was the core of our investment thesis, has the potential to transform the global gaming ecosystem, enabling growth for gaming studios and the exploration of new gaming genres," said Subramanian. 

Jetapult, co-founded by Sharan Tulsiani and Yash Baid, is backed by Accel Partners, Fireside, JetSynthesys, amongst others. 

The company aims to support game studios with a scientific approach to sustainable growth in markets such as Southeast Asia, MENA, Eastern Europe, and Latin America, through a $100 million commitment over the next five years.

Saudi Arabia's Amibition to Become a Gaming Hub

The investment of Jetapult in UMX is aligned with Saudi Arabia's Vision 2030 goal which aims to establish the Kingdom as a global gaming hub by the end of this decade. 

According to a PwC report, gaming revenues in the MENA in 2023 were approximately $7.2 billion, with Saudi Arabia emerging as a key growth player and is home to 23.5 million gaming enthusiasts. 

"This significant investment from Jetapult not only marks a milestone for UMX Studio but also heralds a new era for the Saudi Arabian gaming industry. We are thrilled to partner with a globally recognized leader in the gaming investments space," said Ali Arhabi, founder of UMX. 

He added: "This collaboration will not only accelerate our expansion but also empower us with advanced tools and expertise. In partnership with Jetapult we are committed to setting new benchmarks and establishing a solid foundation for nurturing and expanding Saudi Arabia's gaming talent."