Lucky Kat signs contract licensing the Kumo brand for retail products

Lucky Kat has signed a contract with a global manufacturer and distributor based in North America for the licensing of the Kumo brand on consumer products such as toys, apparel and accessories. Hybrid products that combine a physical item with web3-based components such as a new NFT or benefits in the $KOBAN ecosystem will be marketed by leveraging not only the wide distribution network of our manufacturing partner, but also the strong communities surrounding Kumo, $KOBAN, Panzerdogs and Cosmocadia, bringing Kumo to both web3 and web2 audiences. Sales of Kumo branded products will bring revenue via royalties and are expected to also drive revenue through increased trading in the NFT collection, as all trades of Kumo NFTs generate a 5% transaction fee for the Company.

A press release presenting the manufacturing and distribution partner and outlining the joint go-to-market strategy of the Kumo product line will follow shortly.

“The first market response to Kumo indicates strongly that the brand has potential, and Lucky Kat is now moving forward with a venture that few web3 brands have done before. Together with an exceptional and experienced business partner we will leverage our web3 community to establish Kumo as household brand with traditional web2 audiences. We will move fast to get a first product collection on the market and in parallel evaluate what other options there are to grow the Kumo brand and through that generate revenue as well as support and market the $KOBAN ecosystem,” says Zara Zamani, Fragbite Group Board Member and CEO of Lucky Kat.

“The Lucky Kat team are yet again demonstrating that they are at the forefront of the industry. With the Kumo licensing contract we add a new business vertical and revenue model, while at the same time tying it firmly to our core web3 business. The Kumo products will drive interest and trading in the Kumo NFTs and vice versa, it is a great business plan that I very much look forward to seeing rolled out in the coming months,” says Stefan Tengvall, CEO, Fragbite Group.

About Kumo
Kumo has a dual purpose. Firstly, the collection offers NFTs with utility for players once $KOBAN is publicly launched, allowing interoperability – the possibility to move their Kumo NFTs between games, enjoying continuous benefits, rewards and functions across the ecosystem. Secondly, Kumo is part of the updated brand platform of Lucky Kat, established to increase awareness of Lucky Kat as a developing studio and setting the stage for more B2B-oriented revenue models such as this new vertical with licensing for consumer products.

On 27 September Lucky Kat sold 500 NFTs generating income of 0.8 MSEK in total. The collection of 2,222 NFTs was released in three stages: The first two consisted of 750 NFTs respectively, offered free of charge to primarily players active in the Panzerdogs and Cosmocadia game communities and people active on the Sui blockchain. The free mint was devised as a growth campaign to increase activity and cultivate the $KOBAN ecosystem. Despite being offered for free, these NFTs instantly generated a secondary value on the market. In the third and final release on 27 September, 500 NFTs were released and sold out within 40 minutes. On the same day, Lucky Kat minted 222 NFTs for future marketing purposes. The market cap for the Kumo collection is as of today over 800,000 USD and the collection has garnered attention in the web3 community, generating over 3000 followers on Telegram and close to 9000 followers on X.