SCVNGR is a unique startup with a different take on the concept of location-based mobile gaming- one that has helped the brand new company see impressive growth in a very short period of time.
Before going live with its consumer-focused model (launching iPhone and Android apps just last week) the startup had launched last year as a gaming engine for large organizations, like the US Army, Princeton University and retail businesses with 20-plus outlets, proving a large departure from other mobile gaming startups like Foursquare.
Using SCVNGR’s enterprise tools, clients can build mobile games based around real world “challenges.” Users win points for checking into locations and completing challenges like taking a photo, answering questions and much more. The company’s business model is equally unique in that institutions purchase one credit to build one challenge, with prices varying depending on the vertical and the amount purchased (for example, a university could buy 25 credits for roughly $5,000).
According to the company’s CEO, Seth Priebatsch, the model is working. Over 600 institutions have already signed up, yielding a pretty impressive 91% return rate. The enterprise platform, which provides support and analytics, makes up 100% of SCVNGR’s revenue- allowing the young company to be cash flow positive for several months now and supporting a staff of 45 employees.