Games24x7 Ventures Plans To Invest in Indian Startups

In order to explore early-stage targets in the interactive entertainment industry, online gaming unicorn Games24x7 is forming an Rs.400 Crore investment fund called Games 24×7 Ventures.

The fund will concentrate on making investments in start-ups that complement the company’s primary business divisions.

The sites My11Circle and RummyCircle are operated by Tiger Global-backed Games24x7, which secured $75 million earlier this year at a $2.5 billion value.

Rahul Tewari, chief financial officer, stated that funds from the company’s own balance sheet would be used to support the new investment entity.

Tewari stated, “This is a long-term commitment over the next five years to partner with arising businesses and entrepreneurs and endorses them not only with investment but also with our operating competence and a unique way of scaling up our operations in a very disciplined manner while maintaining unit economics.”

According to him, the industry might be disrupted by technologies like 5G, and immersive entertainment would change how customers interact with brands.

“We are very well positioned to provide operational support to younger companies due to we have an in-depth understanding of the Indian customer and a variety of in-house technology and goods that the consumer desires. We have outstanding capabilities in data science, product development, and marketing automation”, he continued.

In an effort to establish itself as a major player in sports technology, rival Dream Sports, which oversees the Dream11 platform, established a corporate venturing arm last year. The arm has a $250 million corpus. The goal of Dream Capital was to invest in early-stage entrepreneurs in the fields of sports, gaming, and fitness technologies.

Games24x7 is trying to diversify its business through mergers and acquisitions in addition to examining new technologies and products through the investment fund.