Only last week fantasy sports startup (although it was started in 2007…) FanDuel raised $275 million in a Series E round, taking the total capital raised to date to $363 million. That put it into the $1 billion valuation bracket, making one of the few startups out of Scotland to achieve the ‘unicorn’ status.
It’s now clearer why they are raising these amounts: acquisitions. Thus, it’s now announced its acquisition of app business Kotikan.com, also from Scotland.
After starting out as a way to ‘game’ the news business, FanDuel, founded in Edinburgh, switched to a fantasy games platform aimed at the U.S. Kotikan designed and developed the FanDuel mobile offering so “it was logical to bring the talented team in-house to further innovate and develop FanDuel’s mobile products,” said Nigel Eccles, FanDuel CEO and co-founder.
FanDuel’s new employees will complement the existing teams in Edinburgh, Glasgow, New York, Orlando and L.A. The company is still seeking to increase headcount this year to join its 243 staff.
Founded in 2007, Kotikan has grown to become Scotland’s largest mobile app development agency with a team of over 50 employees with a £2.4 million turnover.
Then again, previous clients such as Skyscanner, Standard Life and the Edinburgh Festival Fringe won’t be to happy they must now go elsewhere for app development.