STAN Raises $8.5 Mn From Google’s AI Fund, Others

SUMMARY

The funding saw participation from Bandai Namco Entertainment Inc, Square Enix and Reazon Holdings, Google’s AI Futures Fund and Aptos Labs

The startup plans to use the fresh capital to expand its presence in India and other mobile-dominant markets

Notably, gaming major Nazara Technologies acquired a 15.86% stake in STAN for INR 18.4 Cr, in September last year

Gaming community startup STAN, owned by GetStan Technologies Pte Ltd, has secured $8.5 Mn (INR 74.46 Cr) in a Series A funding round from a clutch of Japanese gaming majors, including Bandai Namco Entertainment Inc, Square Enix and Reazon Holdings.

The round also saw participation from Google’s AI Futures Fund and Aptos Labs, with existing backers, including General Catalyst, GFR Fund, T-Accelerate Capital and Pix Capital.

The startup plans to use the fresh capital to expand its presence in India and other mobile-dominant markets. Another portion of the proceeds will be deployed for AI-led personalisations and creator tooling, as well as launching new integrations for publishers and partners looking to build inside gaming-led communities.

Founded in 2015 by Parth Chadha, Nauman Mulla, and Rahul Singh, STAN connects gamers, facilitates meaningful interactions and provides tools for content creators to thrive. It claimed to have a user base of over 12 Mn, as of 2024, with a major focus on tier II and III markets.

“In the last two years, we’ve grown 25X —purely through product-led growth. We’re building the next billion-dollar social company out of India, and we’re doing it the only way we know—fast, focused, and user-first,” Chadha said.

Notably, gaming major Nazara Technologies acquired a 15.86% stake in STAN for INR 18.4 Cr, in September last year.

On the financial front, STAN’s revenue surged to $1.8 Mn in the financial year ended March 31, 2024 (FY24) from $0.9 Mn in the previous fiscal year. It reported an EBITDA loss of $0.9 Mn compared to an EBITDA loss of $1.2 Mn in FY23.

The development comes at a time when a host of companies are launching gaming funds, coinciding with the sectoral growth and increasing investment opportunities.

In June, Nazara invested INR 4.74 Cr in two international gaming VC funds, Play Venture Fund III and F4 Venture Fund I, to focus on early-stage gaming startups.

In the same month, Meta also launched Meta Gaming Accelerator in India by partnering with four VC firms, Bitkraft Ventures, Kalaari Capital, Lumikai Fund and Elevation Capital, where it would support 20–30 game developers and studios across India.

Prior to that, former Brightcove country head Viniit Mehta’s Pressplay Capital was in plans to raise $10 Mn in June, for its maiden fund to back startups in sectors such as gaming, adtech, media tech, and sports tech.

Felicity Games, Metashot, Funstop Games and KGeN (Kratos Gamer Network) are some of the gaming startups that have raised capital since the start of this year.

As per Inc42 data, India is home to more than 435 Mn online gamers. The country’s online gaming sector is expected to become an INR 66,000 Cr market by 2028, as per PwC.