Video Game Enthusiast Aleksandr Agapitov Quietly Builds $3 Billion Payments Powerhouse
Aleksandr Agapitov is little known inside video gaming circles, let alone the business world. Yet his company is one of the leading players in the $135 billion (roughly Rs. 10,30,040 crore) video game payments industry, in which gamers spend real money to acquire virtual items.
Xsolla, which Agapitov founded in 2005, allows video game producers to sell in-game digital items -- such as “skins” that change a character's appearance or virtual pets -- in exchange for about a 5 percent cut of the sales. Its clients include some of the hottest companies in the industry, including Epic Games, Valve and Roblox, whose platform is a hit with children. He owns 100 percent of the company, which brought in nearly $100 million (roughly Rs. 760 crore) last year.
Two investment banks estimated last year that Xsolla could seek a valuation of as much as $3 billion (roughly Rs. 22,890 crore) if it were to go public, according to documents seen by Bloomberg.
Even so, he's in no rush to do so. Agapitov, 38, who was born in Russia and moved to Los Angeles at age 25, said he enjoys the freedom that comes with not having to answer to shareholders. His goal is to return the company to 40 percent annual sales growth, up from 25 percent now.
“I just like to help game developers make more money,” he said in an interview. “Wonderful innovations come from video games.”
Digital in-game revenues comprised more than three-quarters of all revenue generated by the $180 billion (roughly Rs. 13,73,110 crore) global video game market last year, according to data provider Newzoo.
“There's a desire to monetize beyond that initial purchase price,” especially for free-to-play games, said Julianne Harty, a gaming analyst at Newzoo.
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