Hoora Games Raises $1.3M for a Spotify & TikTok-Style Game App

• Hoora Games generated over €100,000 in profits in a single month, before raising $1.3 million.
• The startup aims to create a seamless ecosystem that benefits both developers and players.
• The app is already soft launched in France, the UK, Belgium, and Switzerland.

Hoora Games, the Paris-based startup, has closed a €1.1 million (about $1.3M USD) seed round to scale for a mobile platform that will allow users to play games instantly without downloading. 

The round was led by Kima Ventures and a group of French and international investors, companies, and trade outlets, including ex-Voodoo, Ubisoft members. This suggests that the investors are hopeful of Hoora's capacity to expand via innovative distribution and social media buzz.

Instant Access, Social Discovery: What is Hoora Selling?

Hoora is trying to create a TikTok-style app that will enable users to scroll continuously through a feed of short, instantly playable games. The gaming company said that the app is available in the European markets, like France, the UK, Belgium, and Switzerland, in a trial mode, with promising early traction and metrics. 

However, instead of making money from one-time purchases or downloads, Hoora plans to earn through recurring platform-wide revenue like subscriptions or regular user activity. In this case, the company wants to act like Spotify, where game developers can post their games on the platform and continue to get paid each time a player plays them.

All in all, this will be like discovering certain developers and stream-play their games, just like how people search and stream music of their favorite artists. This approach saves Hoora money on attracting new gamers and makes it easier for indie developers to gain visibility, as observed by the company in its soft launch in the European market.

Hoora: Profits Up Until Now, Next Step

The company, founded by Romain Mussault, originally generated over €100,000 in profits in a single month. After that the company established two influencer and digital acquisition agencies, which brought in over €10 million as revenue. And now with another million in seed funding, the company intends to develop and strengthen its “growth in Europe before tackling the U.S. market.” As reported by EU Startups, the app has surpassed 100,000 downloads in a few months.

Can Hoora Pass Through Bottlenecks?

All of these metrics point to a promising beginning for a relatively new 2023 company. Nevertheless, it is too early to assume its success or failure, since its current metrics do not really depict actual scalability. Hoora must show consistent user retention, high engagement, and excellent income per active user in order to draw in larger investors in the future.

Since mobile gaming makes up the largest portion of the $90 billion USD global gaming market, it is difficult to get started. Therefore, Hoora's newly built app still needs to make greater efforts to win over investors, players, and developers. Currently, Apple and Google dominate distribution, and instant-play tech often faces store constraints and tight profitability.