Games24x7 playing the right cards to scale business post $75M fundraise
Founded in 2006, Mumbai-basedclaims to be India’s leading digital gaming platform.
Last month, it raised about $75 million in a funding round led by Malabar Investment, taking its valuation up to $2.5 billion.
Speaking about the funding round, Rahul Tewari, Chief Financial Officer, Games24x7, says the startup is now the most valuable multi-gaming platform in the country.
“We have been pioneers in the gaming space in India across different formats: skill gaming, casual gaming, and fantasy,” he says.
He adds that the company will use the funds to invest in technology - the bedrock of the platform. The funds will also be used to accelerate user growth along with looking at synergies in the M&A space to diversify revenue streams.
Rahul shares that the growth potential in the industry is unparalleled. “We take a lot of pride in the fact that we have created an entertainment format that hinges on anytime-anywhere entertainment,” he says.
In terms of key metrics, Rahul mentions that core focus of Games24x7 is on maximising the lifetime value of customers on the platform.
“While we do that, we also want to make sure that our customer acquisition cost is optimised,” he says.
Games24x7 is also receiving a lot of traction through the brand campaigns.
“We have a multi-pronged strategy to invest in the brand, infrastructure, and technology to diversify content and make sure that we continue to be the market leaders and engage with the new breed of customers in India and abroad,” he adds.
Rahul mentions that the platform has always considered synergistic plays. It has invested in platforms like CricHeroes (a minority investment), and is looking to make similar bets to diversify revenue streams. The company is also planning on aligning with content creators overseas to bring more gaming content to India.
Lastly, in terms of revenues, he shares that Games24x7 is a 15-year-old company, which has delivered north of 30 percent CAGR (compound annual growth rate) throughout its journey.
“We continue to see more opportunities for us to scale,” Rahul says.
Edited by Affirunisa Kankudti