Games24x7, a gaming platform, announced the opening of its corporate investment arm on Tuesday, November 1 in order to support the nation’s early-stage startups.
The new organisation, Games24x7 Ventures, will assist domestic players working at the “intersection of technology and interactive entertainment.” The INR 400 Cr will make up its corpus over the following five years.
Trivikraman Thampy, Co-founder and Co-CEO of Games24x7, said, “We believe that we are very well positioned to support early-stage companies beyond just capital. Our ROI-focused mindset, intense customer focus, and scientific operating methodology of scaling topline while preserving sound unit economics would be very beneficial in partnering with founders in building hyper growth companies which will endure.”
Games24x7 will use the fund to collaborate with companies in a variety of industries, including esports, sports technology, digital marketing, digital content, online gaming, blockchain technology, analytics, and other fields. The move will also make it possible for Games24x7 to collaborate with new businesses that complement its primary business sectors.
The gaming unicorn will assist the chosen firms grow faster and develop revolutionary products by offering mentorship as well. To assist the chosen players in scaling their offers and providing specialised products, the move will also make use of Games24x7’s comprehensive understanding of consumers.
Rahul Tewari, CFO of Games24x7, said,“As a highly strategic venture capital partner we bring in a unique blend of access to patient capital along with strategic value additions in areas such as product development, data science, marketing automation, and user growth and monetization to help (the) next generation of young, ambitious founders scale their ventures with confidence.”
Games24x7, a company owned by the economists Bhavin Pandya and Thampy, is the home of well-known online gaming companies like RummyCircle and My11 Circle. The startup’s investors include well-known companies including Tiger Global, The Raine Group, and Malabar Investment Advisors.
Seven months after the gaming business secured $75 Mn at a valuation of $2.5 Bn and became India’s 99th unicorn, the decision to establish the fund was made.
Games24x7 faces a plethora of rivals across various offerings. In the world of fantasy esports, My11Circle competes against industry titans like Dream11, MPL, and Nazara’s Halaplay. On the other hand, in the market for online rummy games, RummyCircle rivals PlayRummy, JungleeRummy, and Adda52Rummy, among others.
Compared to INR 383.7 Cr in FY20, the firm generated a profit of INR 110 Cr in FY21. Its overall operating revenue increased 19.8% year over year to INR 1,573 Cr in FY21.
The gambling industry is still in its infancy despite being beset by scandals and undergoing a regulatory shakeup. With more than 9.33 billion mobile game downloads in 2022 alone, India is the second-largest gaming market in the globe, according to a report.
However, since many state governments, notably Tamil Nadu and Kerala, have banned online gambling, the area still raises controversy. Industry actors frequently went the courts to get a stay of the government prohibition orders.
The Center is thinking about creating a government framework to control the expanding industry. There doesn’t seem to be a strict framework to regulate the industry, therefore the critics and proponents are still at odds.
In FY21, the Indian fantasy sports market was estimated to be worth INR 34,600 Cr, and by FY25, it was expected to reach INR 1.65 Lakh.