Mistplay gives itself way to its ambitions

Montreal’s loyalty platform for mobile games is under the control of a venture capital fund

Posted on 10 Dec. 2021

Karim Benessaieh

Karim Benessaieh
The Press

One of Montreal’s most impressive successes, the loyalty platform for mobile games Mistplay, is under the control of GrowthCurve Capital. The New York -based venture capital fund announced on Friday that it has become a majority shareholder of Mistplay “to support the company in the next phase of its growth”.

No announced value. Mistplay had in 2021 estimated revenues “between 50 and 100 million”, which was determined last month in The Press its CEO and co-founder, Henri-Charles Machalani. The company founded in 2015 has established itself as the largest loyalty platform for mobile games, with approximately 16 million users and 350 games from 180 developers. Since its inception, it has distributed more than $ 23 million, including Amazon gift cards, Visa prepaid cards and credits that can be redeemed at the virtual store, PayPal or the Google Play Store.

missing components

Its shareholders are primarily employees of Mistplay, which added in 2017 “an angel investor from Montreal”, Michael Novak, referred to Mr. Machalani. “We’re not a normal start-up, we didn’t make a lot of money in the beginning and we make money. »

According to the CEO, the arrival of GrowthCurve Capital is the missing ingredient to advance Mistplay to “multi-billion” revenue.

This is our goal. With their funding, we can speed up our projects, hire more people, leverage their network and their experience.

Henri-Charles Machalani, CEO and co-founder of Mistplay

This is a first foray for GrowthCurve Capital into the Montreal ecosystem. Founded in 2020 by Sumit Rajpal, who for two decades headed the Global Investment Banking division at Goldman Sachs, the venture capital fund primarily invests in small companies focused on the use of artificial intelligence and technology. data analysis. Its representatives will have a majority on Mistplay’s board of directors, but it’s not a classic takeover, Mr. Machalani explained.

“GrowthCurve is not an operational company, it is a private investment company [private equity fund]. Mistplay will remain Mistplay, we will retain our trademark and we will acquire other companies. »

Towards an IPO

The CEO does not want his company to be a simple subsidiary within a multinational. Some minority investors have expressed their desire to finance Mistplay, “but it’s just money, Mr. Machalani pointed out. We want more, we want support, investors who will help us grow. ”

The mobile game market is in turmoil, he recalled, with some major players like Playtika and Zynga increasing acquisitions.

There may be a thousand companies in this sector, it is starting to consolidate. We knew we had to take a step. That’s where we bought it. We need to start ourselves to be a big player buying other companies.

Henri-Charles Machalani, CEO and co-founder of Mistplay

Beyond hosting mobile games, Mistplay is preparing a new adventure for the past year, creating its own video games. Based on the acquired knowledge of the tastes of the gamers, we want to develop simple games, which are generally minimalist interfaces, between what we call casual at very casual in jargon. For more complex games, we rely on acquisitions.

Another way is to offer developers monetization tools, primarily through advertising revenue sharing or a transactional platform for player purchases.

Eventually, its CEO announced, we were aiming for an IPO.

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