Backing winners

Kwalee, a leading global games publisher and developer, announces that it has made an ​ equity investment in Devolver Digital (“Devolver”). Having participated in Devolver’s equity placing, the result of which was announced on 2 July, Kwalee holds a 3.58% share in the business. “I would like to thank Harry and the Devolver team for giving us the opportunity to invest in such a fantastic brand and category defining games,” commented David Darling CBE and founder of Kwalee. 

The investment in Devolver fits with Kwalee’s broader growth strategy to expand beyond its heritage in hyper casual mobile gaming to achieve more balanced growth. The minority investment in Devolver increases Kwalee’s exposure to the PC/console segment, one of its four target verticals. Kwalee’s own entry into the PC/console market is relatively new, with its latest launch Robobeat rated ‘overwhelmingly positive’ on Steam, receiving 97% positive reviews. Kwalee has over ten promising PC/console games in the pipeline including The Precinct, The Spirit of the Samurai and In Sink.

The investment in Devolver follows on from its minority investment in French mobile games developer 8SEC in January of this year. 8SEC was an early adopter of another Kwalee focus vertical - the hybrid casual style of mobile game - easy to pick up but designed for long-term play with revenue from a mix of ads and in-app purchases.

Kwalee has a well established track record of success, since its foundation in 2011 by David Darling CBE, previously co-founder of Codemasters. Kwalee’s back catalogue consists of over 70 hit games, which have generated over 1.2 billion downloads, including hits such as Draw it, Teacher Simulator and Airport Security. 

David Darling CBE commented:

“There is no doubt conditions in the gaming industry remain challenging in the near-term but I am confident in the sector’s long-term future. However, the economics of the industry are changing, with an increasing need for scale and financial strength in an industry where access to funding has all but dried up. ​ Kwalee has ambitious plans for growth and will invest and work with the leading players in the industry as we pursue our mission to make the most fun games for the world’s players.” ​

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David is regarded as one of the pioneers and leading entrepreneurs of the UK games industry founding his first company, Galactic Software Ltd aged just 16. David and his brother Richard went on to found Codemasters in 1986, growing it into a global games powerhouse. He was recognised alongside his brother with a CBE for services to the industry in 2008. 

Since launching in 2011 Kwalee has successfully scaled its team to c.400 and built out its operations across four studios in the UK, Portugal, India and China.

Kwalee operates a differentiated strategy to the wider industry choosing to focus on four key market segments, which increases the playing field of opportunities whilst at the same time reducing risk. From its roots in hyper casual gaming, Kwalee is also looking to expand more into casual, hybrid casual and PC/console gaming. 

Publishing is a growing area of the business. Kwalee has earned a reputation as the developer’s champion, offering access to an industry leading platform and dedicated publishing team, combined with a passion for gaming and a genuine collaborative approach. In 2022 Kwalee won Publisher of the Year at both the TIGA Games Industry Awards and The Mobile Games Awards.