Games24x7, a Mumbai-based startup, announced in a statement that it has raised $75 million in a new funding round.
The new unnamed tour, led by Malabar Investment, was attended by companies such as Tiger Global and Raine Group. The round values the startup at $2.5 billion, helping it enter India’s fast-growing list of unicorns, a person familiar with the matter said. Games24x7 noted that they are currently India’s most valuable “multi-game platform” but declined to comment on the valuation.
Games24x7 gained popularity with a rummy game called RummyCircle and a portfolio of casual games under the My11Circle and U Games brands. The 15-year-old firm says it has more than 100 million users.
Trivikraman Thampy, Co-Founder and CEO of Games24x7, said in a statement that this investment is a testament to not only Games24x7’s performance but also India’s enormous potential as an online skill gaming market.
“We are extremely happy to partner with Malabar Investment and to see Tiger Global and Raine Group continue to repose their faith in us.”
The venture had total revenue of $173 million in the fiscal year ending March last year. According to data provided by intelligence platform Tofler, its after-tax profit amounted to $50.5 million.
Sumeet Nagar, managing director of Malabar Investments, said in a statement;
“Games24x7 is a pioneer in the fast-growing online game industry in India and has built a highly profitable business with outstanding acquisition and retention metrics. Not only that, they have continuously improved on these metrics at a great scale, which we believe is quite a remarkable feat. This speaks of the data science capabilities, the rigour, the thoughtfulness and the strive for excellence that the fantastic leadership team brings to the table. We are excited to partner with Games24x7 on its growth journey ahead.”
