Dropp Acquires Metaverse Platform Phly for $25 Million

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Dropp Group has acquired metaverse platform Phly for $25 million to build “digital twins” of the world’s major cities.

Dropp said it is partnering with Phly (which also spells the name Flyy), a social metaverse platform, to develop the physical digital twin (“phygital experience”) in every major city in the world to connect digital and real places for consumers. communities and brands that want seamless access to Web3. The deal shows that Metaverse could enter an acquisition phase after seeing a burst of startup activity.

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DroppLabs, Dropp Group’s innovation arm, will use it to implement Flyy technology to create MetaReality – as it calls Metaverse’s business and multi-sensory development. Available through the DropTV consumer platform, MetaReality will provide users with unique, value-driven Web3 experiences not available elsewhere, the company said.

“Our acquisition of Phly is a huge step forward for our business and our platform. By integrating our innovative technologies, we will deliver the most comprehensive and compelling metaverse experience,” Gurpreet “Gurps” Rai, CEO of Dropp, said in a declaration. “Our mission is to empower communities to build the world they want to live in.”

Dropp uses Phly to transition to digital twins.

The platform will feature fully immersive digital renderings of cities around the world, starting with the most iconic places and buildings. Each building will be branded as a unique NFT, allowing owners to access Dropp’s proprietary technology resources to build and engage communities.

Phly Founder and CEO Adel Al Massarani has joined drop as Metaverse Director and will lead drop’s new MetaReality division. “I am delighted to integrate Flyy into the drop group’s portfolio. Together we are now poised to revolutionize the Metaverse and Web3 industry. »

Gurpreet Rai is the CEO of Dropp.

The company said DroppTV leverages proprietary DroppLabs technology to connect consumers, creators and brands through an interoperable ecosystem that enables streamlined experiential commerce between the physical and digital worlds.

Dropp said this enables brands to achieve improved affinity, increased conversions and granular data attribution. In addition, DroppTV offers unique and comprehensive experiential NFT (non-fungible token) and social token features that enable partners and consumers to create even more value in Web3.

Dropp was founded in 2018, just like Phly. Dropp has 35 full-time employees, while Phly has nine.

“We acquired Flyy because of their technology’s unique complement to our existing technology stack and consumer and customer deliverables,” Rai said in an email to GamesBeat. “We know that current metaverse offerings present significant barriers to entry. For example, they require specialized knowledge of certain technologies such as cryptography, and they lack any real utility. Most are not mobile-friendly. That said, our overall goal is as a company to create an easy-to-understand and accessible on-ramp for everyday consumers and businesses to Web3 and the related experiences it offers, and the assets acquired from Phly will enable us to do that.

He added: “Acquiring Flyy allowed us to accelerate our full Web3 roadmap in terms of building a compelling metaverse offering from the ground up. We are now able to focus on developing and adapting our own technologies, which giving us critical speed to market in an intense race to market.Flyy’s capabilities, when combined with our existing technology stack, will together drive this seamless experience from Web2 to Web3 quickly and efficiently in a comfortable environment.

Regarding the vision for Metaverse, Rai said, “Our vision for Metaverse is to combine digital and physical experiences into one. As we connect our consumers and customers from Web2 to Web3, Metaverse is the last mile extension of this natural progression. This will make enabling intellectual property owners, businesses and consumers to create maximum experiential and economic value. Consumers will now be able to experience both environments simultaneously from anywhere on their mobile device.”

He added: “Our plan for MetaReality is also to bring together, activate and amplify communities – to provide a platform for users and fans to independently grow and market with ideas, experiences and relevant business concepts. Intellectual property owners and companies will have the opportunity to to integrate their fan and consumer experiences across the physical and digital worlds, making their offering much more accessible and powerful.

drop GRAPHIC Phly From August 29, 2022
Phly and Dropp combine to seize the metaverse opportunity.

I asked why Phly’s assets were valuable. Raid said Phly’s technology enables Dropp to create a true physical and digital twin of places that exist in real life — which the company has dubbed “MetaReality.”

“The map of the Flyy technology also allows us to implement ‘metaverse as a service,'” he said. “We can rent and analyze our platform to others, which will be portable across other platforms and experiences. Basically, it allows metaverse owners to create their own ecosystems using drops’ technology, including AR, MR and gamified capabilities .

From a development efficiency perspective, both Dropp and Phly apps are integrated, allowing for seamless integration and faster deployment.

Dropp said it is mining Phly assets and putting them on optimal Web3 rails, which are being identified and will be activated soon. The result will be a comprehensive, easy-to-use offering integrated into the drop app, complementary drop products and our enterprise customer ecosystems, Dropp said.

“In the short term, we already have active drop customers such as Universal/Def Jam artist/actor Dave East, Elite Hospitality and Tajia Diamonds who have a real, current opportunity to expand into the metaverse that we can now activate quickly” Rai said. “MetaReality will also be combined with our SuperFan experience, giving IP owners and their subscribers a dynamic ‘venue’ for activations and experiences – something the market doesn’t currently offer.”

As for consolidation, Raid said it wouldn’t mean exactly what it did in the Web2 world. In Web2, companies consolidated to reduce redundant staff and processes, gain market share and improve bottom line revenues, he said.

“While these goals may be critical to a company’s survival and excellence, the comfort in the Web3 space will be more customer-centric. The consolidation of the Web3 business will focus on providing consumers and end users with a smoother and more seamless engagement across all platforms. Interoperability will be a guiding principle, and decentralized digital assets like NFTs will make this possible,” he said. “The FAANGs (the major technology platforms) and other large centralized technology companies dominated the Web2 world because they were closest to the server and the databases they owned In Web3, consumers and their digital goods are one; they are not dependent on any particular server or database.

He said that people themselves can roam and move their digital assets around the Internet as they wish. As a Web3 company, Dropp Group is consolidating with Phlynot not only because it makes business sense, but also because it will provide our customers with a smooth and uninterrupted digital experience, he said.

“As a company, we are focused on speed to market and scaling as we acquire and adopt technology resources and maximize interoperability between our portfolio offerings in anticipation of continued rapid consolidation we see around us,” said Rai. “We see consolidation in the industry as a positive force, collaborative projects that build long-term products, communities and economies will always be present, as opposed to projects with short-term gold rush philosophies.”

Regarding the economic downturn, Rai said, “We humbly and proudly share that we have strong access to capital with some of the deepest pockets in the world on our capitalization table. We see the turning point in the market as an opportunity and are positioning ourselves to capitalize the dry period to assert ourselves as a leader in the Web3 market. The downturn and our recent funding actually puts us in a stronger position relative to the market and potential competitors.”

He said the company is also setting up a venture capital fund to help promising companies survive and thrive. The company plans to activate its technology, communities and resources as an angel and enabler for some high-potential companies.

“We believe this growth strategy positions us optimally not only for the current environment but also for the coming market upside,” Rai said.

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