Omada raises $7.5M for social prediction game for sports fans

Omada has created a popular social prediction game for sports fans and that enabled it to raise a $7.5 million seed funding round.

Omada has gained traction among sports enthusiasts who place bets (in a non-gambling way) on sporting events. It’s like the social casino games, where you can place bets but cannot cash out real money. The company has over a million monthly active users worldwide, including 300,000 in France alone. The funding will help it expand into the U.S. market.

The app allows users to engage in friendly competition by making free predictions on various sports, including football, basketball, tennis, baseball, NHL, NFL, and Formula One racing. Its unique approach has positioned Omada as a healthy and responsible alternative to traditional sports betting sites, said Adrien Miniatti, CEO of Omada, in an interview with GamesBeat.

London-based Felix Capital led the round, with participation from investors including 20VC, Play Ventures, F4, Motier Ventures, and more.

Apart from its engaging gameplay, Omada has garnered attention for its commitment to raising awareness about sports betting addiction. The company has launched impactful campaigns such as “Ferme Ton Compte” (Operation close your betting account) and “Lav’Omada” (Turning a Laundrette in the heart of Paris into the ultimate World Cup experience).

Origins

Omada is a French company that Miniatti founded in Bordeaux in 2021. His prior mobile gaming company, Green Panda Games, was purchased by Ubisoft in 2018. That enabled him to create a new company with his own money. He also owned Luni, a previous company based on fitness and nutrition.

Omada was born from Miniatti’s previous company, which was an app studio that created brands around fitness, nutrition and more.

“Two years ago, we launched Omada, a social game built around sports for the new generation,” Miniatti said. “It is based on the mechanism of betting, but the mechanic is entirely free. Nobody is playing to become rich or be No. 1 on the leaderboard. It’s a social game, and the long-term retention is crazy.”

Miniatti said that investors noticed that retention was about double what a normal game or app would see. The engagement grows over time. The company is targeting younger sports fans, some who enjoy dressing up their avatars with fashion that shows off their fandom.

“This is why we have very strong retention and engagement,” he said.

The syndicate of investors supporting Omada’s international ambitions includes notable figures from the sports, gaming, and entertainment industries. Xavier Niel, Akin Babayigit, Pierre Antoine Capton, Claire Valoti, Maria Raga, Iris Alameddine, Amine “PRIME” Mekri, Pareto Holdings, Paul Le, Pat Cummins, and the family office of Youri Djorkaeff have all expressed their confidence in Omada’s potential.

The funding will primarily be utilized to fuel Omada’s international growth strategy, with a particular focus on penetrating the lucrative U.S. market. Leveraging the momentum generated by the NFL season, Omada plans to launch an ambassador program centered around College Sports, leveraging the strong community culture that aligns well with the app’s existing game mechanics.

“This investment will enable us to support our international ambitions, particularly in the United States, where we sense the need for an alternative to traditional sports apps,” Miniatti said. “I am thrilled to have the best partners on board as we continue to enhance our gaming experience and maintain a strong connection with our user community, which has been Omada’s strength since the beginning.”

Julien Codorniou, Partner at Felix Capital, said in a statement that Omada has a unique position at the intersection of gaming, social networking, sports, and entertainment. Codorniou emphasized the company’s exceptional user retention and community engagement, which have contributed to its rapid growth and success in every market it has entered.

“Adrien [Miniatti] is one of the savviest operators and the individual to change this industry moving forward,” said Harry Stebbings, founder of 20VC, in a statement.

How it works

The company provides five to nine different predictions per day across different sports like the NFL, NBA, or soccer. You can wager on the outcome of the game or other things as well.

The betting mechanic is free. When you win in a game, you get diamonds. You can also buy diamonds and use them to buy avatars or collectible cards to boost your odds or boost your performance in the game. In contrast to other games in the space, the company doesn’t use any blockchain technology. The target group is 15 to 25 years old. In Europe, the audience is 70% male, but in the U.S. it is half men and half women.

“This is a new generation, consuming differently,” he said.

Omada is poised for further expansion and aims to reshape the sports industry by providing an innovative and immersive experience for Gen Z sports enthusiasts. With the support of its investors and an ever-growing user base, Omada is well-positioned to make a lasting impact in the global sports prediction market. The company has 20 people, including four in the U.S. And it is hiring.

Additionally, Omada has partnered with influencers, collaborated with Red Star FC as a Main Youth Partner, and joined forces with Tonsser to educate young people about the risks of addiction. The company works with influencers in France and that is helping it grow, and it plans to do the same in the U.S.