Games24x7, the undisputed leader in online gaming, is establishing Games 24×7 Ventures, a Rs 400 billion investment fund, to investigate early-stage targets in the interactive entertainment industry.
The fund will concentrate on making investments in start-ups that complement the company’s primary business divisions.
Games24x7, which is funded by Tiger Global and runs websites including My11Circle and RummyCircle, received $75 million earlier this year at a $2.5 billion value.
According to reports, Rahul Tewari, Chief Financial Officer, stated that the company will use its own balance sheet to fund the new investment entity.
“This is a long-term commitment over the next five years to partner with emerging companies and entrepreneurs and support them not only with capital but also with our operating expertise and a unique way of scaling up our operations in a very disciplined manner while maintaining unit economics…,” Tewari said.
According to him, the industry might be disrupted by technologies like 5G, and immersive entertainment will change the way customers interact with brands.
“…because we understand the Indian consumer and have in-house technologies and products that the consumer wants, we are very well positioned to hand-hold younger companies operationally. We have tremendous capability in marketing automation, data science, and on the product development side,” he added.
In an effort to build a sports technology conglomerate, competitor Dream Sports, which oversees the Dream11 platform, established a corporate venture arm with a $250 million corpus last year. In order to wager on early-stage entrepreneurs in sports, gaming, and fitness technologies, Dream Capital was established.
Games24x7 is trying to diversify its company through mergers and acquisitions in addition to examining new technologies and products through the investment fund.
