Sanlo, a financial and monetisation services provider, has entered the web shop space, following the trend of off-store payments. This move comes as more publishers aim to increase their revenue from transactions outside of traditional app stores like the App Store and Google Play.
Unlike the standard 30% revenue share taken by platform holders, web shops offer significantly lower fees, making them an attractive option for businesses. Sanlo, founded in 2020, offers a range of tools for revenue and payment tracking, along with financing options that do not require giving up equity.
The company has recently launched a closed beta program for its web shop platform, currently inviting a select group of games companies to participate. Described as a “plug-and-play” direct-to-consumer service, Sanlo’s platform makes it easy to build and manage a web shop while acting as the merchant of record for payment processing.
One of the first participants in the closed beta program is UK developer Fusebox Games, known for popular titles like Love Island: The Game.
Key Investors and Leadership
Sanlo has secured $13.5 million in funding for its platform, with investments from notable firms including Konvoy Ventures, London Venture Partners, Index Ventures, GFR, XYZ Venture Capital, and Fin Capital. The company is led by CEO Olya Caliujnaia and CTO William Liu, both experienced professionals from Playfish, a social games company acquired by EA.
In a conversation with PocketGamer.biz, Caliujnaia shared that Sanlo initially aimed to provide financial tools for small to medium-sized businesses but later expanded to offer a comprehensive suite of financial and business operation tools tailored for the games industry.
Expanding into Web Shops
According to Caliujnaia, the move into web shops complements the existing services offered by Sanlo and enables publishers to target players across various regions and demographics. This expansion is also driven by the growing global focus on potential app store and payment monopolies, such as the Digital Markets Act in the European Union.
Sanlo anticipates that publishers could collectively generate billions more in revenue over the next 18 months through web shops. The company projects that businesses could capture up to 25% of sales through these channels, translating to a $27 billion opportunity based on data.ai estimates of mobile game in-app purchases reaching $107 billion in 2023.
“Playtika has been leading the charge in this area, with a growing percentage of direct-to-consumer sales reflected in their quarterly earnings,” noted Caliujnaia.
