World Chess secures €6m facility to fuel growth of chessarena.com
() , a London-based chess gaming and entertainment company, announced that its subsidiary WCE has entered a €6 million loan facility with an existing shareholder. The facility can be drawn down and repaid in trenches by WCE, carries 4% interest, and is due in full by December 31, 2025.
World Chess said the initial tranche would be used to refinance an existing short-term loan, with the remaining funds available as additional working capital for an expanded marketing program for chessarena.com, ' online chess gaming platform.
Ilya Merenzon, CEO of World Chess, commenting: "This facility represents an important step in our growth journey. Our main digital product, chessarena.com. The official gaming platform of FIDE - the World Chess Federation, is positioned to scale rapidly, and access to funding ensures we can capitalise on our momentum to establish chessarena.com as the leading global platform for chess players, clubs, and enthusiasts."
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World Chess, an organiser of online chess championships, secures additional funding to refinance its existing debt on better terms, and more importantly, to provide additional working capital for its flagship digital platform chessarena.com.
World Chess is the exclusive operator of chessarena.com (FIDE Online Arena), which allows paid members to receive an online rating recognised by FIDE, the international chess federation and world governing body, recognised by the International Olympic Committee.
The move makes sense in the context of the platform's and online chess' rapid growth as part of the larger esports space. The global chess market was valued at US$2.5bn in 2023 and is projected to grow to $3.8bn by 2032, with rising interest fueled by pop culture and shows like The Queen's Gambit.
In its most recent final results for FY23, forecast revenue growth of CAGR 43% between 2023 and 2025, with broker Allenby Capital placing an optimistic target price of 4.6p at the time of issue.
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