Dream Games Raises $155M at $1B Valuation - Royal Match Success

Istanbul's Rising Star: Dream Games Secures $155 Million

Turkey’s vibrant tech scene continues to foster successful casual gaming startups, evolving from nascent ventures into substantial enterprises. Recently, Dream Games, a mobile puzzle game developer, achieved a significant milestone by raising $155 million in a Series B funding round, resulting in a valuation of $1 billion.

Rapid Growth and Investment

This represents considerable progress for the company, which secured $50 million in a Series A round – the largest in Turkish startup history – just 3.5 months prior. The current funding round is jointly led by Index Ventures and Makers Fund, with participation from Balderton Capital, IVP, and Kora.

This investment follows a period of increased activity in Turkey’s gaming and developer landscape, notably Zynga’s acquisition of Peak Games for $1.8 billion, alongside other strategic acquisitions. Dream Games was founded by former employees of Peak, leveraging their prior experience.

Royal Match: The Driving Force

The funding will primarily support the growth of Royal Match, Dream Games’ puzzle game available on iOS and Android, which launched globally in March.

Impressive User Engagement and Revenue

Royal Match has quickly become a success, boasting 6 million monthly active users. The game generates $20 million in monthly revenue through in-app purchases, excluding advertising revenue, according to AppAnnie data. A source familiar with the company confirmed the accuracy of these figures.

This performance has positioned Royal Match among the top-20 highest-grossing games in key markets like the U.S., U.K., and Germany, competing with established titles such as Candy Crush and Homescapes.

Strategic Expansion Plans

“The funding will be allocated to extensive user acquisition across all channels and geographic regions,” stated Soner Aydemir, co-founder and CEO of Dream Games. He highlighted Asia, specifically Japan, South Korea, and China, as key areas for expansion. “Our primary objective is to scale the game to become a leading title in the global market.”

Navigating the Mobile Gaming Landscape

The mobile gaming industry is known for its cyclical nature and volatility. Developers often face numerous development cycles and launches before achieving a successful title, if at all. The reliance on app-install ads and marketing can also create instability, as removing these costs can jeopardize a game’s success.

Aydemir acknowledges this challenge, noting that while the company will invest in in-game advertising to drive downloads of Royal Match, a solid game foundation is crucial for sustainable growth.

Sustainable Growth Through Quality

“Scaling is impossible without strong key metrics,” he explained. “However, our lifetime value (LTV) is high, allowing for sustainable scaling due to the game’s quality. The product itself is paramount.”

A Focused Development Approach

Dream Games adopted a meticulous development process for Royal Match, dedicating years to refining the game’s details and conducting extensive testing. The team’s experience at Peak Games also contributed to their understanding of player preferences.

“Our users appreciate this dedication to detail,” Aydemir added.

Prioritizing Depth Over Breadth

Currently, the company’s focus remains solely on Royal Match. When asked about developing additional games, Aydemir referenced Pixar’s strategy.

“Pixar initially released films at a low frequency, approximately every 2-3 years, before increasing the rate. We envision a similar trajectory. This year, our priority is Royal Match, but we will explore developing other games if we can do so effectively.”

Balancing Innovation and Maintenance

He emphasized the difficulty of balancing new product development with the ongoing maintenance and support of an existing game, particularly for a small team. “Successfully managing both is essential for our business model, which centers on creating new intellectual property.” He anticipates releasing another game early next year.

Investor Confidence

Investors recognize the company’s focused approach. Michael Cheung, General Partner at Makers Fund, stated, “The Dream Games team’s deep genre insight, meticulous attention to detail, and strong team chemistry have contributed to the early success of Royal Match. We are excited to support their global expansion.”

Monetization Strategy: User Experience First

Dream Games prioritizes in-app purchases over advertising. “Advertising negatively impacts user experience, and we are committed to providing a positive experience for our players,” Aydemir explained.

Future Growth and Talent Acquisition

The new funding will facilitate further growth and enable Dream Games to expand its team, as evidenced by the numerous open positions listed on its website. The emergence of startups in Turkey, including those in e-commerce like Getir, is contributing to a growing talent pool.

Industry Recognition

Stephane Kurgan, venture partner at Index Ventures and former COO of King, commented, “Since its launch in early March, Royal Match has become a leading casual puzzle title globally, driven by exceptional retention metrics. This demonstrates the high quality of the game developed by the Dream Games team and their flawless execution.” Index Ventures has also invested in Roblox, Discord, King, and Supercell.