Jest Raises $7M Seed for Messaging Game Marketplace

The mobile gaming landscape is on the cusp of a significant transformation, as Jest, an innovative marketplace for messaging-based games, has successfully emerged from stealth with a substantial $7 million seed funding round. This capital infusion, spearheaded by venture capital firm Innovation Endeavors, signals a strong market belief in Jest's vision to redefine how players discover and engage with games, bypassing traditional app store gatekeepers.

At the core of Jest's strategy is the burgeoning adoption of Rich Communication Services (RCS). This advanced messaging protocol, which saw Apple integrate it into iOS 18 in 2024 and supported over one billion daily messages in the U.S. by May 2025, according to Google, provides a fertile ground for interactive experiences directly within chat threads. Deyan Vitanov, Jest's CEO and co-founder, emphasizes the strategic advantage: "Mobile game developers have largely been locked into app store distribution as the primary way to reach players. RCS games live in the messaging inbox, the stickiest surface on mobile, where people are already spending huge amounts of time talking to friends and family. We’re building on an interaction pattern people already use every day."

This shift comes at a critical juncture for the mobile gaming industry. Data from Appfigures' annual report indicates a notable decline in game downloads, with 2025 witnessing 39.4 billion downloads, an 8.6% year-over-year drop, following a 6.6% decrease from 2023 to 2024. Consumers are increasingly selective, making direct-to-chat distribution a compelling alternative to the saturated app store environment. Jest's early performance underscores this potential, having already recorded over 1 million messaging games played and more than 300,000 messages exchanged within just four months of its beta phase, ending January.

The platform's appeal extends significantly to developers, offering an unprecedented 90/10 revenue split, where studios retain 90% of their earnings. This stands in stark contrast to the industry standard 30% commission levied by major app stores, presenting a powerful incentive for creators. Furthermore, Jest has engineered a clever network effect: if one studio acquires a user who then monetizes through another game on the platform, the economics are split 70% to the monetizing studio, 20% to the acquiring studio, and 10% to Jest. This model ensures even viral games that don't directly monetize can generate revenue for their developers.

Early indicators suggest superior engagement metrics. Vitanov reports 3-4 times better retention compared to traditional mobile apps and significantly lower user acquisition costs, with early partners seeing 30-60% reductions. This efficiency is crucial in a competitive market where user acquisition can be a major expenditure. The platform has already garnered interest from established development partners, including teams behind popular titles such as "Episode," "Puppy Mansion," and "Kingdom Maker."

Beyond the seed funding, Jest is actively fostering its developer ecosystem by launching a dedicated Games Fund. This fund is designed to support studios across various stages of franchise development, deploying capital in three tiers: $1 million for flagship titles, $200,000 for promising mid-stage projects, and $40,000 for exploratory concepts. Currently operational in the U.S., Jest plans an aggressive expansion into 14 additional countries by the third quarter, positioning itself as a global contender in the evolving mobile gaming distribution landscape.