Online gaming unicorn Games24x7 is launching a Rs 400-crore investment fund – Games 24×7 Ventures – to explore early-stage targets in the interactive entertainment space. The investments will focus on startups that have synergies with the company’s core business areas.
Tiger Global-backed Games24x7, which operates platforms including My11Circle and RummyCircle,
raised $75 million early this year at a valuation of $2.5 billion.
The company’s chief financial officer Rahul Tewari told ET that the company would fund the new investment vehicle from its own balance sheet.
“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 bring in our operating expertise and a unique way of scaling up our operations in a very disciplined manner while maintaining unit economics, which we think is the mantra for investing in today’s times,” Tewari said.
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“There is going to be a lot of disruption because of technologies such as 5G, where immersive entertainment is going to transform the experience of the customers. We think that because we understand the Indian consumers and have in-house technologies and products that the Indian consumer wants, we are very well positioned to hand-hold younger companies operationally. We have tremendous capability in marketing automation, data science, and also on the product development side,” he added.
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Last year, Games24x7’s rival Dream Sports, which manages the Dream11 platform, set up a corporate venture arm with a corpus of $250 million in a bid to become a sports technology conglomerate. Dream Capital was launched to bet on early-stage startups in sports, gaming and fitness technology.
In addition to exploring new technologies and products through the investment fund, Games24x7 is also looking at diversifying…
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