Indian game streaming platform Loco has sold a majority stake to UAE-based investment firm Redwood. The deal was worth $65 million and the investment is a strategic shift for the startup as it is seeking for international markets. The development comes amid Loco facing challenges in its home market. It is gradually becoming difficult for Indian esports streaming platforms to generate revenue.
The valuation of Loco has dropped significantly from its peak of nearly $150 million in 2022. The decline is due to limited number of popular games in India. However, it now sees global markets as a key opportunity for growth.
Anirudh Pandita and Ashwin Suresh founded the company. The two said that the investment is a recognition of the work done by their team. They emphasized that the primary goal of the company now is to build a globally recognized platform.
The Redwood deal also aligns with a broader trend of consolidation in the Indian digital content space. Loco’s sister company is Pocket Aces and it sold a majority stake to Indian music label Saregama in a $40 million deal. The move highlights an increasing competition and strategic restructuring in India’s gaming sector.
Catamaran Ventures, Krafton, Hashed and other investment backers said the aim of Loco is to expand and build a Twitch-like platform. It has grown by enabling gamers to stream popular titles such as Grand Theft Auto V, Call of Duty: Infinite Warfare, Battlegrounds Mobile India, Free Fire and Valorant in the Indian market. The platform supports streamers by allowing them to generate income through virtual goods purchased by viewers and has secured licensing deals with prominent game publishers like Krafton, Activision and Riot Games.
