United Arab Emirates-based Redwood has acquired a majority stake in game streaming platform Loco, as the Indian company looks to expand its focus on international markets, TechCrunch has learned and confirmed.
Redwood, a newly formed investment company, has signed a $65 million deal with Loco, an investment that provides a complete exit for all existing Loco backers.
This drop in valuation from Loco's peak of around $150 million in 2022 reflects the Indian esports streaming company's broader struggle to generate revenue, and its challenges Part of this is due to the limited number of popular games on the market.
Loco now believes there are far greater opportunities outside India, and the new deal will further the company's “global expansion efforts,” the company told TechCrunch.
“This investment recognizes the tremendous work our team has done over the past few years,” Loco founders Anirudh Pandita and Ashwin Suresh told TechCrunch in a joint statement.
“Games are an integral part of the world's cultural zeitgeist, and we look forward to building a platform that is at the heart of this global movement. Live streaming delivers authenticity in a way that no other medium can. We want to put fans at the center of this experience.”
The deal follows the sale of Loco's sister venue Pocket Ace, which sold a majority stake to Indian music label giant Saregama in a $40 million deal earlier this year.
Loco, which is backed by investors including Catamaran Ventures, Krafton and Hashed, is building a Twitch-like platform to serve markets where Amazon-owned services have not yet expanded or have low penetration. That's what I'm aiming for. Currently, gamers in the Indian market stream titles such as Grand Theft Auto V on its platform. “Call of Duty: Infinite Warfare''; “Battlegrounds Mobile India''; “Free Fire''. And “Valorant”.
Streamers on the platform earn revenue through virtual goods purchased by viewers. The startup has signed licensing deals with multiple game publishers, including Krafton, Activision, and Riot, based on what it described as a “first-mover advantage” in its 2022 offering to investors.