Lagos Life developer raises $500,000 at $10m valuation with backing from Flutterwave, Terra and Mono CEOs

Vatar Inc., the team behind the hit Nigerian browser game Lagos Life, secured $500,000 in pre-seed funding at a $10 million valuation shortly after the game’s launch.

Among the notable investors is Olugbenga Agboola, the CEO of Flutterwave, who participated through his investment fund Resilience17. Other investors include Oo Nwoye, Nathan Nwachuku, the CEO of Terra Industries, and Abdulhamid Hassan, the CEO of Mono. Remarkably, the team closed this funding round in less than a day!

Founded on October 6 by Shalom Rayhamen, Owen Rayhamen, and Anderson Oriahi, Vatar is crafting a virtual world that reflects everyday life in Lagos, Nigeria. In this immersive game, players can design their characters, find jobs, earn virtual naira, pay rent, ride iconic danfo buses, and connect with other players in a vibrant city full of familiar Nigerian landmarks.

Since its October 1 launch, the game has taken off, attracting millions of users. By October 8, Lagos Life had already gained an impressive 4.3 million players from 15 different countries, with over 200,000 players online at the same time during peak hours.

Similar read: Lagos Life hit 1 million players in three days, and it may be rewriting the rules for Nigerian games

Shalom Rayhamen has expressed that this funding will be crucial for enhancing product development, boosting marketing efforts, and expanding the team to better serve the growing community of players.

How Lagos Life makes money

Lagos Life stands out in the gaming world because it’s free to play. Instead of charging players to download the game, it earns money through advertisements, partnerships with brands, and music promotions. Imagine wandering through a vibrant virtual city where businesses can showcase their products and musicians can pay to have their songs played at virtual clubs. Players even have the option to buy virtual currency using real money to enhance their experience.

Since its launch, Vatar, the company behind Lagos Life, has managed to earn and secure over $170,000. However, they haven’t revealed whether they’re making a profit yet.

The success of Lagos Life comes amid a surge of interest in Nigerian-made browser games. Developers are quickly creating innovative games, tapping into the latest tools and technology to engage players.

Now, Vatar faces its biggest challenge: how to transform the initial excitement about the game into a thriving long-term business. They aim to keep the game running smoothly while ensuring their growing community of players remains happy and engaged.

Also read: As Lagos Run and Lagos Life shatter records, here are 5 earlier Lagos-themed games and how they fared