Loco sells majority of stake to UAE based tech company, says India not a priority
On July 17, Storyboard18 reported Loco’s failure to generate revenue using the Advertising Video On Demand (AVOD) model, which led to a significant decline in Daily Active Users (DAUs).
ADVERTISEMENT
With the decline of Esports growth in India, Loco, a game streaming platform, sold its majority of stakes to Redwood Tech FZCO (“Redwood”), a newly-formed, technology-focused investment company based in the UAE. The company’s existing investors were given an exit. The company is now eyeing global expansion.
Co-founders Anirudh Pandita and Ashwin Suresh sold a majority stake to Redwood for $65 million. However, the management team and founders will remain onboard and plan to expand the platform into global markets. The company's valuation which was $150 million in 2022 has dropped significantly after this round of funding.
Loco had previously raised a total of $51 million in funding, including a $42 million Series A round in 2022 led by Hashed, with participation from Makers Fund, Catamaran Ventures, and Korea Investment Partners. Investors from the company’s seed round, such as Krafton, Lumikai, and Hiro Capital, also took part in this round.
On July 17, Storyboard18 reported Loco’s failure to generate revenue using the Advertising Video On Demand (AVOD) model, which led to a significant decline in Daily Active Users (DAUs).
Ashwin Suresh, Co-founder of Loco, stated, “We are planning to enter newer markets such as LATAM, the Middle East, Southeast Asia, and Europe. India is no longer a priority due to the declining growth of Esports, largely caused by multiple regulatory restrictions on gaming. Additionally, the Esports industry in India cannot rely on just one or two titles; that doesn’t reflect a healthy growth of the ecosystem.”
He further explained, “We are planning our expansion, incorporating both AVOD and subscription-based revenue models. We will test which model works best for each market and adapt accordingly. The investment will be used to enhance content on the platform, with some allocated towards tech development.”
Loco has previously partnered with major publishers like Krafton, Activision, Ubisoft, and Riot Games, as well as global entities like the NBA and FIFA.
