Redwood Acquires Majority Stake in Loco, Indian Game Streaming Platform, for $65 Million
In a strategic move to expand its focus to international markets, UAE-based investment firm Redwood has acquired a majority stake in the popular Indian game streaming platform, Loco. This $65 million deal also marks a full exit for all existing Loco backers.
The valuation drop from Loco's peak of nearly $150 million in 2022 highlights the challenges faced by Indian esports streaming firms in generating revenue, attributed in part to the limited number of popular games in the market. However, Loco now sees a significant opportunity outside of India and is gearing up for global expansion with the support of this new investment.
Founders of Loco, Anirudh Pandita and Ashwin Suresh, expressed their excitement about the deal, emphasizing the platform's potential to become a global leader in gaming and live streaming. They believe that live streaming offers a unique way to connect with fans and are committed to putting the fan experience at the center of their platform.
Backed by investors such as Catamaran Ventures, Krafton, and Hashed, Loco aims to create a Twitch-like platform that caters to markets where other streaming services may have limited presence. The platform currently features popular titles like "Grand Theft Auto V," "Call of Duty: Infinite Warfare," "Battlegrounds Mobile India," "Free Fire," and "Valorant."
Streamers on Loco's platform earn revenue through virtual goods purchased by viewers, with licensing deals in place with game publishers like Krafton, Activision, and Riot. These partnerships are based on Loco's pitch deck for investors, which highlights its "first-mover advantage" in the market.
In conclusion, this acquisition by Redwood and Loco's plans for global expansion signal a shift in the gaming and live streaming industry. For investors, it presents an opportunity to capitalize on the growing popularity of esports and gaming content. For gamers and viewers, it means access to a new and innovative platform that prioritizes authentic connections and fan engagement.