Loco, the Indian game streaming platform, has been acquired for $65 million by Redwood a UAE investment firm. Loco has been searching for this type of partnership will expand its impact in the international market. As the company begins this new phase, it will be interesting to note further development and growth of game streaming services.
Rapid Growth of Loco
Anirudh Pandita and Ashwin Suresh founded Loco. Loco allows gamers to stream popular titles such as “Grand Theft Auto V,” “Call of Duty: Infinite Warfare,” Garena’s “Battlegrounds Mobile India,” Garena’s “Free Fire,” and Riot Games’ “Valorant.” Loco has benefited from easy access to the platform and a dedicated audience of gamers. The sale to Redwood happens when Loco seeks the expansion of its services into the global market. This deal also offers the exit for all other early-stage Loco investors including but not limited to Catamaran Ventures, Krafton, and Hashed.
Financial Transaction Details
The acquisition by Redwood is not a money-making proposition but a well-thought-out opportunity to unlock the possibilities of Loco in the gaming world. Loco finds the platform valuable for Redwood, a new investment firm, and the option of reaching out to such a broad base of gamers. The gaming industry is expected to generate $256.97 billion in 2025 with game streaming central to this industry. Thanks to the funds and experience already invested in Redwood, Loco has the opportunity to establish itself as a market player within this constantly growing and developing niche.
The founders of Loco Anirudh Pandita and Ashwin Sureh jointly said, “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. Live streaming enables authentic connection in a way that other mediums can’t match, and we want to put the fan at the center of this experience.”
Quotation Source: MoneyControl
Exponential Growth of Loco
There is a rapid expansion of the game streaming market in the current society, especially within the developing professional gamer’s market with streaming services such as Twitch and YouTube Gaming. Loco wants to create a platform similar to Twitch and operate within geographies Twitch has little to no presence in or low market saturation. The Indian gaming industry is also increasing the number of gamers country-wide and investment in esports. Loco has benefited from licensing various game publishers partnering with Krafton, Activision, and Riot. Such collaborations have helped Loco establish a wide portfolio of many favorite games and get interested consumers.
Several Challenges and Opportunites for Loco
The acquisition of Redwood has multiple opportunities for Loco. Loco faces several challenges. Loco has several competitors including Twitch, YouTube Gaming, and Facebook Gaming. Loco must find out how to provide customers with distinct features, attract gamers, and provide them with a platform. Growing this platform will present the need to explain the different issues involved in marketing into international markets. This includes the local gaming communities, regulatory bodies, and local game publishers and influencers.
Conclusion
Loco sold a majority stake to Redwood Partners at $65 million is a major achievement for the Indian game streaming platform. As a result of having a vision for the organization’s development and being a strategic investor, Loco is ready to benefit from the emerging trends in the gaming segment of the global market.
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