In a significant move for the gaming industry, UAE-based investment firm Redwood has acquired a majority stake in the Indian game streaming platform Loco. This $65 million deal marks a pivotal moment as Loco aims to broaden its horizons and expand into international markets, as confirmed by TechCrunch.
Details of the Acquisition
The investment not only secures Redwood a majority stake in Loco but also provides a full exit for all existing investors in the platform. This acquisition comes at a time when Loco's valuation has declined from its peak of nearly $150 million in 2022, highlighting the broader challenges faced by Indian esports streaming companies in monetizing their platforms effectively. These struggles are partly due to a limited selection of popular games available in the Indian market.
Loco's Vision for Global Expansion
Loco is now setting its sights on a much larger opportunity beyond India's borders. The startup expressed that this investment will significantly bolster its global expansion efforts. Co-founders Anirudh Pandita and Ashwin Suresh shared their enthusiasm in a joint statement, emphasizing the hard work their team has put into building the platform over the years. “Gaming is an integral part of the cultural zeitgeist globally, and we look forward to building a platform that is at the heart of this global movement,” they stated.
The Landscape of Game Streaming
The acquisition follows Loco’s recent sale of its sister company, Pocket Aces, which sold a majority stake to Indian music label giant Saregama for $40 million earlier this year. With backing from prominent investors such as Catamaran Ventures, Krafton, and Hashed, Loco aims to develop a platform akin to Twitch while targeting markets where Twitch has limited presence.
Currently, Loco hosts a variety of games on its platform, including popular titles like Grand Theft Auto V, Call of Duty: Infinite Warfare, Battlegrounds Mobile India, Free Fire, and Valorant. Streamers on Loco can monetize their content through virtual goods purchased by viewers, a strategy supported by licensing agreements with several major game publishers, including Krafton, Activision, and Riot Games.
Conclusion
As Redwood steps in with this strategic acquisition, Loco is poised for an exciting new chapter aimed at leveraging global gaming trends. With its commitment to enhancing the user experience through livestreaming and its goal of placing fans at the center of the gaming experience, Loco is set to become a formidable player in the international game streaming landscape.
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