The French unicorn isn’t just playing games with its business strategy—it’s winning!
French gaming powerhouse Voodoo is absolutely crushing it right now! The company just announced its second consecutive year of profitability, proving the skeptics wrong and showing that diversification into social media apps like BeReal might just be the magic formula for sustainable growth in the competitive mobile space.
BeReal’s transformation: From money pit to breakeven
When Voodoo acquired gen Z photo-sharing app BeReal last June in that headline-grabbing €500m deal (€166m upfront with the rest in earnouts), many industry watchers raised eyebrows. At acquisition time, BeReal was burning through an eye-watering €2.6m monthly and hadn’t even started monetizing its product.
“We couldn’t afford to keep this cash burn,” Voodoo CEO Alexandre Yazdi told us with refreshing candor. “The first objective was not to earn money but to break even.”
Fast forward a few months and the turnaround is already happening! After some tough-but-necessary cost-cutting (including around 30 staff layoffs) and implementing “light monetization” through advertising, the BeReal business has stabilized. As Yazdi explains: “We’ve managed to do this in a few months. If we give ourselves 2-3 years… we can start building a resilient and profitable business.”
Beyond hyper-casual: Voodoo’s evolution strategy
While the BeReal acquisition grabbed headlines, it represents just a small slice (10%) of Voodoo’s revenue pie. The company’s bread and butter remains mobile gaming, where it’s competing with giants like Zynga (acquired by Twenty-Two in 2022 for €11.2bn) and Supercell (which reported €2.8bn in 2024 revenues).
What’s fascinating is how Voodoo has completely shifted its business model. The company initially rode the hyper-casual gaming wave—those instantly playable, viral games with short lifespans—but has now pivoted hard toward “hybrid-casual” titles that offer deeper gameplay and monetization. These now represent a whopping 70% of Voodoo’s revenue!
Looking ahead, Yazdi revealed the company plans to expand into even more complex “pure casual” games, with potential revenues reaching up to €1bn per game. That’s not chump change!
M&A strategy: Not just BeReal
BeReal might be Voodoo’s most talked-about acquisition, but it’s just one of approximately 20 deals the company has completed. Notable purchases include Israeli gaming studio Beach Bum (€300m in 2021) and various smaller partner studios.
While M&A isn’t their primary growth strategy, Voodoo is keeping its eyes peeled for new opportunities. The company recently secured €175m in funding from a consortium of banks and institutional partners, primarily to refinance existing debt.
What’s next? (Hint: Not an IPO)
Despite the impressive growth trajectory, don’t expect Voodoo to hit the public markets anytime soon. When asked about a potential IPO, Yazdi remained cautious, noting that “for a successful IPO, you need certain elements…” including sufficient scale.
With 950 million downloads in 2024 and 150 million monthly active users, Voodoo has clearly established itself as a major player in the mobile space. The question now is whether its diversification strategy—particularly the transformation of BeReal from a money-losing phenomenon into a sustainable business—will cement its place among Europe’s tech giants for the long haul.
One thing’s for sure: this French unicorn isn’t done disrupting the mobile landscape!
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