The transaction involves a mix of primary and secondary investment
This investment will enable Loco to enter multiple new markets within the next 12 months
As part of its international rollout, the company will announce new partnerships with major gaming companies, esports athletes, and streamers
Game streaming platform Loco
has sold its majority stake to UAE-based Redwood, a newly floated investment firm, for $65 Mn to expand its footprint into the overseas markets.
With the new investor injecting significant capital to support Loco’s global expansion, the deal also provides an exit for the startup’s existing investors.
The transaction is a mix of primary and secondary infusion, which will enable Loco to venture into newer markets in the next one year, as per the startup.
“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. Live streaming 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,” said Loco’s founders Anirudh Pandita and Ashwin Suresh.
Bengaluru-based Loco, founded in 2017, has grown into a major player in the gaming community, employing 249 individuals. The platform has fostered highly engaged communities across popular game categories such as BGMI, Free Fire, Call of Duty Mobile, Clash of Clans, Grand Theft Auto (GTA), and Valorant.
As part of its international rollout, the company will announce new partnerships with major gaming companies, esports athletes, and streamers to enhance its content offerings. Loco has previously collaborated with leading publishers such as Krafton, Activision, Ubisoft, and Riot Games, as well as global brands like the NBA and FIFAe, and plans to extend these partnerships to new markets.
Last year, Loco laid off 40 employees, approximately 36% of its 110-member workforce, as part of a strategic realignment to focus on transaction-based monetization and operate with a leaner cost structure.
The layoffs came after the platform raised $42 Mn (INR 330 crore) in a Series A funding round in 2022 led by Hashed.
Loco’s investor base also includes gaming giant Krafton and gaming-focused VC Lumikai.
Last year, Saregama acquired a 51.82% stake in Loco’s sister property Pocket Aces at a valuation of $40 Mn. The music giant was also planning to acquire 92.61% stake in Pocket Aces eventually.
By Inc42 Media
Source: Inc42 Media