Appcharge Raises $26M to Bypass Apple and Google App Stores

Tel Aviv-based startup Appcharge has secured $26 million in a funding round that values the company at $100 million. The firm provides a “Shopify-like” infrastructure for game publishers, enabling them to build dedicated web stores to sell virtual currencies and in-game items directly to their player base, effectively circumventing the payment ecosystems of Apple and Google.

The investment round was led by Nordic VC firm Creandum, known for its early backing of Spotify. Other participants include industry giant Supercell, Bitkraft Ventures, Moneta Ventures, and returning investors Play Ventures and Glilot Capital.

Building a Direct-to-Consumer Gaming Ecosystem

Founded in 2022 by CEO Maor Sason, Appcharge seeks to solve the friction developers face when trying to own the relationship with their users. The platform operates as a “headless” commerce solution, providing APIs that allow publishers to manage their own digital storefronts while handling complex back-end requirements, including:

• Merchant of Record services: Managing tax registration, payment processing, and compliance across various international markets.
• Fraud prevention: Implementing security protocols to protect transactions.
• Analytics: Offering insights into purchasing behaviors, with plans to integrate machine learning for pricing optimization.

Currently, the platform processes approximately $200 million in annual transaction volume for its clients. Sason noted that while the company is gaining traction, it remains focused on building an end-to-end solution for direct-to-consumer (D2C) sales rather than competing in the mobile advertising space.

Market Context and Regulatory Hurdles

The rise of Appcharge comes amid ongoing tension between game developers and major mobile platform holders. Sason, who previously founded and sold the mobile gaming ad startup Appush to Magic for $25 million, observed that many developers were seeking alternatives to costly and protracted legal battles, such as the high-profile litigation between Epic Games and Apple.

Carl Fritjofsson, general partner at Creandum, highlighted that the current market environment—marked by rising customer acquisition costs (CAC) following Apple’s App Tracking Transparency framework—has made profitability a primary concern for developers. “Higher Customer Acquisition Costs mean less profitability for game developers. And with more maneuverability around the app stores, a solution may be in sight,” Fritjofsson wrote in a blog post.

Scalability and Future Growth

Despite the potential for higher margins, developers face a significant hurdle: traffic. Unlike the integrated experience of an app store, web-based stores require users to leave the game environment to complete a purchase. According to Sason, Appcharge relies on community-driven traffic, such as forums and newsletters, to drive users to these external sites.

While the $200 million processed by Appcharge is a fraction of the $107 billion global mobile gaming market, the startup is positioning itself as a vital component for publishers looking to diversify their revenue channels. The funding arrives during a challenging period for the gaming sector, where deal volume has declined and market growth has slowed to approximately 2%, according to recent data from Konvoy Ventures.