Midnite has secured a credit financing deal worth up to $100m (£74.3m) from Discerning Capital’s House Advantage Fund (HAF) and PvX Capital.
The deal will be comprised of a revolving credit facility which will be deployed specifically towards user acquisition costs.
The UK challenger brand said this funding would allow it to “grow and simultaneously build a cash reserve for non-marketing investments”.
The cash reserve would then be used to invest in “growth initiatives such as accelerated hiring and product development”.
Discerning Capital’s HAF is one of the fund’s private credit offerings to operators looking to “acquire users more efficiently”.
Singapore-based PvX Capital also provides user acquisition funding to online gambling operators, including Australian firm Dabble.
Discerning Capital led Midnite’s Series B funding round earlier this year, in which the operator raised $10m.
One of the fund’s partners, David Williams, took a seat on the Midnite board following the funding round’s closing.
The Series B round took Midnite’s total capital raise to more than $35m.
EGR recently spoke to the company’s founders Nick Wright and Daniel Qu, as well as Williams, to explore the business’ rapid growth over the past few years.
Wright said: “This partnership allows us to triple down on both performance and brand marketing campaigns, while preserving cash for innovation and expansion.
“The flexibility of the House Advantage structure means we can pursue our long-term strategy with greater conviction and fewer trade-offs.
“This arrangement also signifies the strength of the partnership Midnite has with Discerning Capital. The confidence the team has in what we are doing at Midnite allows us to strive for continued growth and execute our strategy to disrupt the gaming industry for good.”
Davis Catlin, Discerning Capital managing partner, added: “For too long, the growth trajectory of online wagering operators has been constrained by the limitations of traditional venture capital or credit, which is hard to obtain across the broader gaming ecosystem.
“By tying capital deployment to actual marketing performance, we unlock sustainable, aggressive scale without forcing operators into unnecessary equity dilution or onerous repayment structures.
“This credit facility for Midnite sets a new benchmark for how ambitious firms in our sector can finance growth.”
The post Midnite secures $100m financing deal to “disrupt the gaming industry” first appeared on EGR Intel.
User acquisition financing from Discerning Capital and PvX Capital to free up funds for product development and hiring spree as challenger looks to make a dent in the UK
The post Midnite secures $100m financing deal to “disrupt the gaming industry” first appeared on EGR Intel.