Digital Turbine Invests €8.5 Million in Aptoide to Boost Independent App Store, Catappult
In a strategic move set to reshape the dynamics of mobile app distribution, Aptoide, the alternative Android app store, has successfully secured a substantial €8.5 million funding injection from Digital Turbine. This significant financial boost is earmarked to propel the development and promotion of Aptoide's innovative mobile app ecosystem platforms, namely GamesHub and Catappult.
GamesHub, a collaborative venture between Digital Turbine and Aptoide, is steadily carving its niche as an alternative game app store in the competitive US market. With the freshly acquired funds, Aptoide plans an ambitious expansion strategy, targeting a presence on 80 to 100 million devices by the close of 2023. Noteworthy is Aptoide's strategic alliances with major US carriers such as ATT, Verizon, USCellular, Tracfone, Cricket, and BLU US, positioning GamesHub as a compelling alternative for users and developers alike.
Catappult, another jewel in Aptoide's crown, is an alternative mobile gaming distribution and monetization platform that boasts hundreds of millions of users globally. This platform facilitates connections to more than 20 alternative app stores, empowering developers to effectively promote and monetize their apps. Impressively, Catappult reported stellar results in 2022, showcasing its ability to drive substantial growth for mobile game developers. Monthly revenue for developers using Catappult experienced a remarkable surge of over 20%. The top 5 games on the platform, including Lords Mobile, Mobile Legends, Clash of Kings, Z Day, and War and Magic, exceeded industry standards with an average revenue of over $100 per paying user.
The symbiotic relationship between Aptoide and Digital Turbine strengthens further with this recent investment, emphasizing their commitment to revolutionize app discovery and distribution. Paulo Trezentos, Aptoide's CEO, expressed enthusiasm about the partnership's potential, describing the investment as a testament to Aptoide's incredible growth.
Beyond platform enhancement, Aptoide has visionary plans for the cash infusion, including the repurchase of stock from current shareholders. This strategic financial move aligns with the broader narrative of Aptoide's evolution, which saw Digital Turbine leading its Series-B funding round last year, securing a total of $12 million in investments from Faurecia, Portugal Ventures, and the 200M Fund.
Adding another layer to this dynamic narrative, Aptoide recently celebrated a landmark decision by the European Commission under the Digital Markets Act (DMA). This decision designates tech giants, including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, as gatekeepers in the digital landscape. The DMA imposes several obligations on these gatekeepers, ranging from anti-competitive pricing prohibitions to ensuring fair and non-discriminatory access to platforms. Aptoide's strategic positioning in this evolving regulatory landscape underscores its significance as a key player in the future of mobile app distribution.
In essence, Aptoide's recent funding triumph not only fuels the growth of its innovative platforms but also solidifies its standing as a transformative force in the ever-evolving realm of mobile app distribution and monetization.
Source: adapted from an article by Anne Freer, Writer for Business of Apps.