By Sagar V. Mankar UAE-based investment firm Redwood has acquired a majority stake in Loco, a prominent Indian game streaming platform.
According to TechCrunch, Redwood has signed a $65 million deal with Loco and provides a full exit for all existing Loco backers.
The current deal values Loco significantly lower than its peak valuation of nearly $150 million in 2022. This mainly attributed to the limited number of popular games in the Indian market that made it challenging for streaming platforms to diversify content and attract a wider audience.
With this new investment, Loco is setting its sights beyond Indian borders. The company has expressed that this deal will fuel its “global expansion efforts.” This shift in focus suggests that Loco sees greater potential in international markets compared to its home turf.
Loco founders Anirudh Pandita and Ashwin Suresh shared their perspectives in a joint statement:
“This investment is a recognition of the immense work done by our team in the past few 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. Livestreaming enables authentic connection in a way that other mediums can’t match, and we want to put the fan at the center of this experience.”
Loco aims to build a platform similar to Twitch, the Amazon-owned streaming giant. However, Loco’s strategy involves targeting markets where Twitch either hasn’t expanded or has weak penetration.
In the Indian market, Loco hosts streams of popular games such as:
- Battlegrounds Mobile India (BGMI or Indian version of PUBG)
- Free Fire
- Grand Theft Auto V
- Call of Duty: Infinite Warfare
- Valorant
Loco’s revenue model for streamers is based on virtual goods. Viewers can purchase these virtual items, which then translate into earnings for the streamers.
Loco has also struck licensing deals with industry giants such as: Krafton, Activision, and Riot Games.
This acquisition comes on the heels of another major deal involving Loco’s sister company, Pocket Aces, which sold a majority stake to Indian music label Saregama for $40 million earlier this year.