The Tiger Global-backed company, which operates platforms including My11Circle and RummyCircle, raised $75 million earlier this year at a valuation of $2.5 billion
Mumbai-based Games24x7 has launched Games24x7 Ventures, a Rs 400-crore investment fund that will invest in early-stage start-ups in the interactive entertainment space.
The Tiger Global-backed company, which operates platforms including My11Circle and RummyCircle, raised $75 million earlier this year at a valuation of $2.5 billion.
However, the company does not plan to utilise these Rs 400 crore funds in diversifying its business. Instead, will make investments to explore the sector.
“This is a long-term commitment over the next five years to partner with emerging companies and entrepreneurs and support them not only with capital but also with our operating expertise and a unique way of scaling up our operations in a very disciplined manner while maintaining unit economics,” Rahul Tewari, chief financial officer of the gaming start-up said.
Tewari said the inclusion of technologies like 5G could revolutionise the sector, and with the help of immersive entertainment, customer experience can also be rapidly transformed.
Apart from collaborating with new-age start-ups, the company is aspiring to expand its business through mergers and acquisitions.
“Diversification is happening – operational diversification is under way on the platform, but this fund, in itself, will not deliver it because it is going to be a vehicle for making minority investments. We will benefit by getting access to new business models and learning about emerging technologies and products in the space. Diversification will not happen through this fund, that will happen through M&As,” Tewari added.
Bhavin Pandya, co-founder and co-CEO of Games24x7 stated, “We have launched this fund to foster India’s entrepreneurial and deep-tech ecosystem. We believe thata strong vision supported by the right environment can accelerate the growth journey for any start-up and our own progress is a testament of the same. With Games24x7 Innovation Fund, we strive to be a catalyst in the growing start-up community, which offers a perfect amalgamation of unique ideas, disruptive business models and new innovative technologies.”
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