Today, the company announced the closing of a new round of funding, having received investments from Tiger Global, Intel Capital and General Catalyst. All three contributors to this latest round of funding have worked with Vostu in the past, with Intel Capital’s participation dating back to the company’s seed round in 2008. This new round of funds will largely be put towards the development of new games and applications.
Regarding the company’s outlook, Vostu CEO Matias Recchia made the following remarks:
Mobile is one of the technology segments that will grow most over the next few years. Moreover, it is a market that isn’t yet saturated as the number of Brazilians who buy smartphones and tablets is increasing fast. We know that these individuals also seek entertainment in these devices, so-called m-entertainment. Given this, our principal focus with this new investment will be on mobile while maintaining the same level of performance on the other platforms on which we operate.
Vostu was founded in 2007 by Harvard University students Daniel Kafie, Mario Schlosser and Josh Kushner (who are no longer part of the company’s directive board). Since that time, the company has taken off in a big way in Latin America – especially in Brazil.
Today, Vostu has more than 50 million registered users, 90% of which are Brazilian. It has a portfolio of 14 games and plans to launch six more before the year comes to an end. Though the company’s business model now depends upon the freemium concept for revenues, avenues such as product placement and brand partnerships are currently being evaluated.