Bengaluru-based online gaming unicorn Mobile Premier League-owned Mayhem Studios has raised $20 million in a Series A funding round led by Sequoia Capital. The round also saw the participation of Steadview Capital, Truecaller and Bring Gordon, the chief product officer of Kleiner Perkins.
The company will utilise the newly generated fund to create new gaming titles in India. Additionally, it eyes ramping up its capabilities.
The funding came a few days after the central government announced regulations for online gaming. The Narendra Modi-led government has legitimised various forms of gaming except those which allow real-time betting.
Mayhem Studio was launched in 2022 to develop AAA mobile games. The subsidiary firm competes with Dream Game Studios ( a firm owned by Dream 11's parent firm Dream Sports), Nazara Technologies and others. The company came up with its first gaming initiative called Underworld Gang Wars, a few days after its official launch.
Mobile Premier League (MPL), the parent of Mayhem Studio, is going through a tough time. In the financial year (FY) 2022, it witnessed its net loss surge 3x to $149 million from $48.3 million in FY21. Its operating revenue also increased by 29 per cent to $65.6 million in FY22 from $50.8 million in FY21. The company raised nearly $150 million at a valuation of $2.3 billion in September 2021.
Last year, MPL announced its plans to lay off 100 employees as a cost-cutting measure.