Esports betting platform Midnite secures $16m cash injection
Capital to be ploughed into further product development as start-up expands into Brazil, Mexico and EU
Midnite, a UK-licensed esports betting site, has raised $16m (£11.8m) in a Series A round spearheaded by global merchant bank The Raine Group.
The funding round, which saw existing backers increase their investment, will be deployed to fuel growth initiatives as the London-based start-up “supercharges its product platform”.
The offering currently includes esports betting, CashMode where gamers bet on their own matches for real cash prizes, and a “hyper-casual” casino with UI and features designed specifically for gamers.
Besides the UK market, Midnite has soft launched in Brazil and is plotting an entry into Mexico, accelerated by a partnership with an unnamed Mexican operator. A Malta Gaming Authority licence is pending approval.
As part of this latest capital raise, The Raine Group’s co-founder and partner, John Salter, joins Midnite’s board while managing director Garrett Gomes will be “a board observer”.
The Raine Group has been investing in the igaming space since 2008, including early investments in US operator DraftKings, lottery app Jackpocket and game technology company Mythical Games. Other notable backers of Midnite include Makers Fund and Venrex.
Midnite was founded in 2018 by Nicholas Wright and Daniel Qu, who previously created DFS platform Dribble.
Developed in collaboration with Sky Bet, Midnite is currently available via the web and an iOS app, although an Android version is in the pipeline.
The company, which consists mainly of engineers, quants and designers, is also embarking on a hiring spree as it aims to double its headcount of around 30 currently.
Back in January 2020, the founders raised over $2.5m from backers including execs at Betfair and GVC (now Entain), bringing the total funding at the time to $4.5m.
Commenting on the latest investment, Wright said: “We pride ourselves on leveraging the best forms of technology, fan-centric features, and in-house models to offer next level experiences to our users.
“We’re thrilled to be partnering with Raine, one of the most successful investors in gaming, as we seek to expand globally.”
He continued: “Raine’s funding, as well as its strong relationships in the gaming industry, will be extremely valuable to us as we move forward with our strategic goals as the esports market continues to rapidly grow.”
Investment in the esports betting space is heating up lately as operators and investors look to capitalise on catering to the next generation of bettors.
For example, Entain bought Seattle-based esports betting platform Unikrn last August, and the FTSE 100 operator has just pledged to invest £100m in innovation to deliver new experiences for customers.