Loco Sells Majority Stake To UAE’s Redwood For $65 Mn

Loco, an Indian gaming streaming platform, has sold its controlling ownership to Redwood, an investment business located in the United Arab Emirates, for USD 65 million. The acquisition aims to accelerate Loco's expansion into overseas markets while also providing an exit strategy for the start-up's existing investors. The acquisition, which combines main and secondary capital infusion, is a significant milestone for the Bengaluru-based platform, which intends to expand its operations globally over the next year.

Expanding Loco’s Global Presence

Loco, which was launched in 2017, has emerged as a key participant in India's gaming community, with 249 employees and suitably engaged user communities for titles such as BGMI, Free Fire, Call of Duty Mobile and Valorant. The new funding will enable the platform to enter new areas and expand its international presence.

The platform's founders, Anirudh Pandita and Ashwin Suresh, stated, "Gaming is an important aspect of global culture, and we're delighted to create a platform that brings enthusiasts together in novel ways. Live streaming provides an authentic connection that no other medium can match, and we're putting fans at the heart of this experience."

As part of its worldwide expansion, Loco intends to form new agreements with prominent gaming businesses, esports athletes and streams. The company has already worked with publishers such as Krafton, Activision, Ubisoft and Riot Games, as well as worldwide brands like as the NBA and FIFAe, which it plans to expand to new markets.

Loco’s Strategic Moves And Challenges

Last year, Loco made news when it lay off 40 people, or 36 per cent of its 110-person workforce, as part of a strategic change to transaction-based monetisation and operational efficiencies. This follows the platform's USD 42 million Series A investment round in 2022, which was headed by Hashed and supported by investors such as gaming giant Krafton and venture capital firm Lumikai. 

Along with its gaming business, Loco's sibling property, Pocket Aces, gained prominence when music giant Saregama paid USD 40 million for a 51.82 per cent share in the company. Saregama intends to eventually grow its ownership to 92.61 per cent.