Game Streaming Startup Rooter Bags $16 Mn Funding From Lightbox, Others

SUMMARY

The funding round, which was a mix of equity and debt, also saw participation from Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, among others

Rooter said it will use the fresh proceeds to strengthen its technology capabilities and acquire
businesses in the coming months to expand its foothold in the country

Rooter, which raised $25 Mn in its Series A round in January 2022, is among a handful of startups to have raised funding in 2022 as well as 2023 amid the ongoing funding winter

Gaming platform Rooter has raised $16 Mn in a fresh funding round led by Mumbai-based VC firm Lightbox. The round, which was a mix of equity and debt, also saw participation from Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures.

Existing investors Duane Park Ventures, LeAD Sports & Health Tech Partners, ADvantage VC, Goal Ventures, Capital A, and Astarc Ventures, among others, also participated in the funding round.

The startup said it would use the fresh capital to strengthen its technology capabilities, sharpen its product bouquet, and further enhance user experience on the platform.

Router will also use the funding to acquire new businesses in the coming months to expand its foothold in the country.

Founded in 2016 by Piyush Kumar and Dipesh Agarwal, Rooter is an online esports streaming and content platform. It claims to have a user base of over 60 Mn. Its content library includes live streams, short-form content, and videos across ten Indian languages.

The startup has raised over $46 Mn in multiple rounds till date, including $25 Mn in its Series A round led by Lightbox in January last year. The startup intends to become an Indian version of the US-based live streaming platform Twitch.

Rooter’s net loss jumped 3.6X to INR 40.7 Cr in FY22 from INR 11 Cr in FY21. Meanwhile, revenue from operations rose over 6.6X to INR 11.3 Cr from INR 1.7 Cr in FY21.

Rooter is among a handful of Indian startups which have managed to raise fresh funds in both 2022 and 2023 amidst the ongoing funding winter. The startup competes against the likes of FanClash, Loco, Winzo, and Krafton.

Though the gaming industry in the country is anticipated to touch a size of $8.6 Bn by FY27, according to a report by Lumikai, the sector is currently plagued by layoffs and mounting losses. Earlier this year, gaming unicorn MPL fired over 100 employees and exited Indonesia, while Sequoia-backed FanClash laid off over 75% of its workforce as it was unable to secure a new funding round.

MPL saw its loss zoom 3X year-on-year (YoY) to $149 Mn in FY22, while its revenue from operations stood at $65.6 Mn. Meanwhile, Winzo, another gaming platform, reported a net loss of INR 120.5 Cr, a 2.3X jump from FY21, while its revenue from operations also rose 2.3X to INR 233.8 Cr in FY22.