Rooter, has secured $16 million in a recent funding round. The online platform for esports streaming and content will use the money to expand its business in India.
In a recent funding round, a combination of equity and debt was secured, with notable participation from Trifecta Capital, Pivot Ventures, Baldota Family Office, and Global Play Media, among other investors.
Rooter has announced that it plans to utilize the newly acquired funds to bolster its technological capabilities and acquire businesses in the near future, with the aim of expanding its presence in the country.
Rooter, a startup that secured $25 million in its Series A funding round in January 2022, has emerged as one of the few companies to have successfully raised funds in both 2022 and 2023, despite the ongoing funding winter.
Rooter, a gaming platform, has secured $16 million in a recent funding round, with Lightbox, a Mumbai-based venture capital firm, leading the investment. A recent funding round, consisting of both equity and debt, has attracted investment from a variety of sources. Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures all participated in the round.
In the latest funding round, a number of existing investors, including Duane Park Ventures, LeAD Sports & Health Tech Partners, ADvantage VC, Goal Ventures, Capital A, and Astarc Ventures, have participated.
The startup has announced that it will utilize the newly acquired funds to bolster its technology capabilities, refine its product offerings, and improve the overall user experience on its platform. Router has announced that it will utilize the funding to procure additional businesses in the upcoming months, with the aim of broadening its presence in the nation.
In 2016, Piyush Kumar and Dipesh Agarwal established Rooter, an online platform for esports streaming and content. With a reported user base of over 60 million, the company claims to have a significant following. The content library boasts a wide range of offerings, including live streams, short-form content, and videos in ten distinct Indian languages.
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The startup has managed to accumulate a total of $46 million through various funding rounds, with the Series A round being the most significant, raising $25 million. The round was spearheaded by Lightbox in January of the previous year. The startup aims to establish itself as the Indian counterpart of the popular US-based live streaming platform, Twitch.
Rooter, a sports social media platform, has reported a significant increase in its net loss for FY22. The company’s net loss has surged 3.6 times to INR 40.7 crore from INR 11 crore in the previous fiscal year, according to its latest financial report. In a noteworthy development, the revenue from operations witnessed a remarkable surge of over 6.6 times, soaring to INR 11.3 Crore from INR 1.7 Crore in FY21.
Amidst the ongoing funding winter, Rooter has emerged as one of the few Indian startups that have successfully secured fresh funds in both 2022 and 2023. This startup is in direct competition with industry giants such as FanClash, Loco, Winzo, and Krafton.
According to a report by Lumikai, the gaming industry in the country is expected to reach a size of $8.6 Bn by FY27. However, the sector is currently facing challenges such as layoffs and increasing losses. In a recent development, gaming unicorn MPL has reportedly laid off over 100 employees and exited Indonesia. Similarly, Sequoia-backed FanClash has also witnessed a significant workforce reduction of over 75% due to its inability to secure a new funding round.
In the latest financial year, MPL witnessed a significant three-fold surge in its losses on a year-on-year basis, amounting to $149 million. Meanwhile, the company’s revenue from operations was recorded at $65.6 million. Winzo, a gaming platform, has reported a significant increase in net loss for FY22, reaching INR 120.5 Cr, which is 2.3 times higher than the previous fiscal year. However, the company’s revenue from operations has also grown by 2.3 times, reaching INR 233.8 Cr in FY22.