Dubai's Scalo leads $3.5m funding round for mobile game publisher Hexacore

Warsaw-headquartered company will use the new capital to fuel its expansion

The global gaming market is expected to reach about $340 billion by 2027. Reuters

Dubai-based tech venture company Scalo Technologies has led a $3.5 million investment round for mobile game publisher Hexacore.

Founded in 2019, Warsaw-headquartered Hexacore is behind popular games such as Sushi Roll, Blend It 3D and Merge Animals, with its titles having garnered more than 350 million downloads.

Hexacore will use the new capital to support its expansion plans, Scalo said in a statement on Tuesday.

Los Angeles-based video game commerce company Xsolla, Latvian mobile games development firm Estoty and other angel investors also participated in the funding round.

"Hexacore's ... approach to web3 gaming perfectly aligns with our investment philosophy,” said Abdumalik Mirakhmedov, director and co-founder of Scalo Technologies.

Abdumalik Mirakhmedov, right, and Rashit Makhat, co-founders of Scalo Technologies. Photo: Scalo

“We firmly believe that the company has the potential to become a major player in the web3 gaming industry, based on its ability to revolutionise how gamers interact with in-game assets, benefiting from a hybrid monetisation model."

Covid-induced lockdowns prompted a surge in interest as people stayed indoors and turned to gaming for entertainment, while improvements in technology and connectivity have boosted the user experience.

The global gaming market is expected to reach about $340 billion by 2027, from $198.4 billion in 2021, Dubai Multi Commodities Centre said in its latest Future of Trade 2023 report.

"We leverage blockchain technology to offer gamers a new level of ownership and control over their in-game assets,” said Mikita Khazau, co-founder and chief executive of Hexacore.

"Web3 technology enables individuals to own and trade gaming assets. However, the ability to achieve interoperability across multiple games lies in the hands of game developers. We are moving down this path.”

The fresh capital will drive the development of Hexacore's mobile games with hybrid monetisation, including in-app purchases, NFT (non-fungible tokens) collectables and rewarded ads.

Hybrid monetisation lets developers leverage the combination of any two or more strategies including in-app ads, in-app purchases and subscriptions, according to Ernst & Young. It enables them to tap into revenue streams, monetise more players and maximise profits per player.

Founded in Singapore in 2020, Scalo established its headquarters in Dubai in April. It plans to invest $100 million in start-ups over the next three to five years.