Gaming continues to see strong traction: Games24x7 raises $75 million at a valuation of $2.5 billion

Gaming continues to see strong traction: Games24x7 raises  million at a valuation of .5 billion

NEW DELHI: The listed tech companies may be under the weather in terms of stock market share prices, but private fundings round at high valuations continues.
Multi-gaming online platform Games24X7 said that the company has raised $75 million at a valuation of $2.5 billion, where the fresh inflows were led by Malabar Investment.
The company, which has properties such as Rummy Circle (cards), My11Circle (fantasy) and UGames (casual gaming), said it will use the funds for expansion of its current businesses, even as it may go for a bigger funding round later, Bhavin Pandya, co-Founder of the company, told TOI.
The current round of funding also includes existing investors Tiger Global and Raine Group. Tiger had earlier invested in the company in 2011 and 2012, and Raine did their first round of investment in 2019.
Currently, one of the most-valued gaming company is Dream Sports, the parent company of fantasy sports platform Dream11, which was valued at $8 billion when it had raised $840 million by a clutch of investors in November last year.
Other top companies include Mobile Premier League which in September last year raised Series E funding at a pre-money valuation of $2.3 billion.
Corona lockdowns and the rapid proliferation of data of smartphones had seen a surge in the gaming business, and companies have now been competing aggressively for users, even though concerns around regulatory challenges exist.
Pandya said that Games24x7, which was founded in 2006 and now has over 100 million users, is looking at expansion across segments as the online gaming category grows by 30%. He said the company is also looking at categories around virtual and augmented reality to have more immersive gaming experiences.
“This investment round feels particularly special, when the sentiment around growth stocks, especially in the new-age sector has been sluggish. It reaffirms the importance of building a business on strong fundamentals,” he said.
John Salter, partner & co-founder of The Raine Group said the company believes in the potential of India’s gaming market, both as an investor and as a trusted advisor.

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