Funstop Games Raises $5 Mn To Accelerate Game Development

Gaming studio Funstop Games has raised $5 Mn in its Series A funding round, led by 360 ONE Asset. Existing investor InfoEdge Ventures also participated in the funding round.

In a statement, Funstop Games said it will use the funding to expand its ad-tech capabilities, and grow its portfolio of games. 

The studio also plans to introduce more titles in the spiritual gaming segment.

Founded in 2020 by Prashanth Vijay and Tamesh Sharma, the startup claims to have generated a revenue of $4 Mn so far, with a portfolio of over 30 games under its belt. 

The gaming studio claims to have over 100 Mn downloads globally, mostly led by games like Airport Rush and Perfect Time, which together have amassed over 75 Mn downloads.

“This investment gives us the resources to scale our operations, expand our portfolio, and bring uniquely Indian storytelling to a global audience,” cofounder Sharma said.

The development update comes at a time when the gaming industry is on the rise in India. According to a report, about 90 Mn gamers paid for online games last year, despite India traditionally being a utilitarian and price-conscious market.

The country had about 455 Mn online gamers in 2023, which by the end of 2024 is expected to increase to 491 Mn. 

Gaming startups like Dream11, MPL, and Games24X7 are also part of the country’s growing unicorn club. However, the real money gaming sector has been hit hard by the 28% GST regime imposed last year.

Despite this, the Indian gaming industry is seeing a lot of interest from investors. Along with global gaming focused VC firms like Lumikai, Indian companies like Nazara Technologies are also on an investing spree. 

Earlier this year, Nazara signed a definitive agreement to acquire a 47.7% stake in Moonshine Technology, the parent company of online poker platform Pokerbaazi, in a secondary transaction valued at INR 831.5 Cr. 

In another recent move, the gaming giant acquired a 15.86% stake in GetStan Technologies Pte. Ltd (STAN), a gaming community platform, for INR 18.4 Cr (approximately $2.2 Mn).