Redwood, a UAE-based investment firm, has recently acquired a majority stake in Loco, an Indian game streaming platform, in a deal worth $65 million. This acquisition marks a significant move for Loco as it looks to expand its focus to international markets, signaling a new chapter for the company. The deal also includes a full exit for all existing Loco backers, showcasing Redwood’s confidence in the platform’s potential for growth.
Valued at nearly $150 million at its peak in 2022, Loco’s recent valuation drop reflects the challenges faced by Indian esports streaming firms in generating revenue. One of the contributing factors to this struggle is the limited number of popular games available in the Indian market. However, Loco sees a much larger opportunity beyond India and views the acquisition by Redwood as a stepping stone towards its global expansion efforts.
Anirudh Pandita and Ashwin Suresh, the founders of Loco, expressed their excitement about the investment, stating, “This investment is a recognition of the immense work done by our team in the past few years. Gaming is an integral part of the cultural zeitgeist globally, and we look forward to building a platform that is at the heart of this global movement.” They emphasized the importance of live streaming in enabling authentic connections between gamers and fans, highlighting the unique value proposition that Loco offers in the gaming industry.
The acquisition of Loco by Redwood follows the recent sale of Loco’s sister property, Pocket Aces, which saw a majority stake being sold to Indian music label giant Saregama in a $40 million deal. With the backing of investors such as Catamaran Ventures, Krafton, and Hashed, Loco aims to establish itself as a Twitch-like platform that caters to markets where existing streaming services have limited presence. In the Indian market, Loco currently features popular titles such as “Grand Theft Auto V,” “Call of Duty: Infinite Warfare,” “Battlegrounds Mobile India,” “Free Fire,” and “Valorant.”
One of the key revenue streams for streamers on the Loco platform is through virtual goods purchased by viewers. The startup has also secured licensing deals with major game publishers like Krafton, Activision, and Riot, leveraging what was described in a 2022 pitch deck for investors as a “first-mover advantage.” This strategic approach positions Loco as a leading player in the game streaming industry, offering a unique platform for both gamers and fans alike.
Expanding Horizons: Loco’s Global Ambitions
With the acquisition by Redwood, Loco is now poised to expand its reach beyond the Indian market and tap into international opportunities. The investment from Redwood provides the necessary resources and support for Loco to scale its operations and establish a stronger presence in key markets around the world. By leveraging its expertise in game streaming and building on its existing partnerships with top game publishers, Loco is well-positioned to drive growth and innovation in the global gaming ecosystem.
Driving Innovation: The Future of Game Streaming
As the gaming industry continues to evolve and expand, the role of game streaming platforms like Loco becomes increasingly important in shaping the way gamers interact and engage with content. By offering a platform that enables real-time interactions between streamers and viewers, Loco creates a dynamic and immersive gaming experience that sets it apart from traditional gaming platforms. With a focus on community building and fostering authentic connections, Loco is at the forefront of driving innovation in the game streaming space.
Empowering Creators: The Rise of Gaming Influencers
In addition to providing a platform for gamers to showcase their skills and connect with fans, Loco also plays a crucial role in empowering gaming influencers and content creators. By offering a space for creators to monetize their content through virtual goods and partnerships with game publishers, Loco enables a new generation of gaming influencers to thrive and grow their online presence. This support for creators not only benefits the individual streamers but also contributes to the overall growth and vibrancy of the gaming community.
In conclusion, the acquisition of Loco by Redwood represents a significant milestone for the Indian game streaming industry and paves the way for Loco’s global expansion ambitions. With a focus on innovation, community building, and empowering creators, Loco is well-positioned to capitalize on the growing demand for interactive gaming experiences. As the gaming landscape continues to evolve, Loco remains at the forefront of driving change and shaping the future of game streaming.