Games24x7, a Mumbai-headquartered startup that owns and operates multiple mobile games, has raised $75 million in a new financing round, it said on Wednesday. The round values the startup at $2.5 billion, a person familiar with the matter said.
The new round was led by Malabar Investment and saw participation from existing investors Tiger Global and Raine Group. In a statement, Games24x7 said it is now India’s most valuable “multi-game platform.”
Games24x7 is popular for its rummy game, called RummyCircle, fantasy platform My11Circle, and a portfolio of casual games under the brand name U Games. The 15-year-old firm says it has amassed over 100 million users.
“We are extremely happy to partner with Malabar Investment and to see Tiger Global and Raine Group continue to repose their faith in us. This investment is a testimony not only to Games24x7’s performance, but also to India’s immense potential as an online skill gaming market,” said Trivikraman Thampy, co-founder and chief executive of Games24x7, said in a statement.
Most of its users play its fantasy sports title, but the startup earns the vast majority of its revenue from its card-based game.
The startup’s total income in the financial year that ended in March last year was $173 million. Its profit after tax during this period stood at $50.5 million, according to data sourced by intelligence platform Tofler.
“Games24x7 is a pioneer in the fast-growing online gaming industry in India and has built a highly profitable business with outstanding acquisition and retention metrics,” said Sumeet Nagar, Managing Director at Malabar Investments, in a statement.
“Not only that, they have continuously improved on these metrics at a great scale, which we believe is quite a remarkable feat. This speaks of the data science capabilities, the rigour, the thoughtfulness and the strive for excellence that the fantastic leadership team brings to the table. We are excited to partner with Games24x7 on its growth journey ahead.”