The 'No. 1 Advertising Model For Gen Z': Avatar Maker Genies Raises $15M

Earlier this month, billionaires Thomas Tull and Jim Breyer participated in a $15-million fundraising round for the digital avatar company Genies.

Benzinga had the chance to speak with 26-year-old Genies CEO Akash Nigam about the company's rapid growth and why Genies is creating a unique way for companies to access the youngest demographic of up-and-coming American spenders.

Business Model

Genies’ business model has three prongs, Nigam said: its digital avatars themselves; accessories that allow users to customize their avatars; and specific actions the avatars can perform as users interact with each other.

Companies can integrate their brands into the avatars, creating a unique opportunity for product placement in the Generation Z market, Nigam said.

“Brands will almost pay us as an agency to be able to communicate and activate the most coveted demographic — Gen Z — using those three different layers."

In a world where advertising is undergoing a massive transition from offline to online, Genies offers its clients a unique take on online advertising.

“We would be viewed as your No. 1 advertising model for Gen Z," Nigam said. "Gen Z right now [is] communicating through avatars in this new language, and we have been able to activate that entire demographic."

The latest $15 million in fundraising, which values Genies at $100 million, will be used to expand the company's rapidly growing business and add more employees, he said.

“Right now we’re around 15 people big, but you should see us double in size shortly."

What’s Next

Genies is also planning on expanding its ecosystem by adding more features. Users should be on the lookout for more high-profile celebrity avatar users, Nigam said.

“There’s the mainstream consumer app that you can download in the App Store, create your own genie and then export to your favorite messaging platforms. You’ll see that get reinvented over the next few months. Additionally, we have out talent agency where we pair up brands with different talent, and you should see our roster continue to expand there."

Genies will be announcing new partnerships in the second half of 2019 that integrate Genies’ avatars into third-party services targeting a younger demographic, the company's CEO said.

Nigam has not disclosed the amount of revenue Genies is generating, but has said the company is not yet profitable. Genies announced its first major partnership with Gucci last year.

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