Rooter, a platform for gaming and esports content, has raised $16 million in a growth round that was co-led by Lightbox. In the round, Rooter’s board of directors saw the addition of Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures.
A $25 million Series A funding round led by Lightbox in January of last year was part of the startup’s $46 million total funding to date. It is based in Delhi.
The most recent capital infusion, which is a combination of debt and equity, will quicken Rooter’s growth trajectory, strengthen its technological capabilities, and promote market expansion, the company said in a press release. Additionally, it will look for opportunities for international expansion and possible strategic acquisitions.
More than a million video game creators call Rooter, a platform founded in 2016 by Piyush Kumar and Dipesh Agarwal, home. Among the gaming teams that call Rooter home are Skyesports, Orange Rock, Chemin Esports, Revenge Esports, and Orangutan. The platform has more than 60 million users, and its content library consists of a variety of live streams, short-form articles, and videos in more than 10 different Indian languages.
With its large gaming audiences and preference for mobile-based content consumption, the company seeks to serve markets that are similar to India. It has formal expansion plans for Southeast Asia and the MENA region.
During FY22, Rooter’s operational revenue increased 6.5X to Rs 11.38 crore from Rs 1.74 crore. According to the company, with a gross margin of 80%, its revenue increased four times in the previous year to $7 million (Rs 56 crore) ARR. The company estimates that it will surpass $10 million (Rs 82 crore) in annual revenue by the third quarter of this year and be profitable by April 2024 at the latest.
The firm is in direct competition with Turnip, which is backed by Elevation Capital, as well as Loco, which is backed by Krafton and Lumikai.
