Gaming and esports content platform Rooter, headquartered in Delhi, has successfully secured $16 million in a growth round of funding, led by Lightbox. The funding round attracted participation from several prominent investors, including Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures. This recent investment brings Rooter’s total funding raised to $46 million, with a significant $25 million Series A funding round led by Lightbox in January of the previous year.
Rooter, founded in 2016 by Piyush Kumar and Dipesh Agarwal, has quickly established itself as a leading platform for gaming enthusiasts and esports enthusiasts. The platform boasts a user base of over 60 million and is home to more than a million gaming creators. Notable gaming teams such as Skyesports, Orange Rock, Chemin Esports, Revenge Esports, and Orangutan are among the platform’s esteemed users. Offering a wide range of content across more than 10 Indian languages, Rooter’s content library includes live streams, short-form content, and videos.
The latest funding infusion, consisting of both debt and equity, will play a crucial role in propelling Rooter’s growth trajectory. The company plans to utilize the capital to strengthen its technological capabilities, expand its market reach, pursue cross-border growth opportunities, and consider strategic acquisitions. Additionally, Rooter aims to expand its presence formally across Southeast Asia and the MENA region, targeting markets that exhibit gaming audiences similar to India, along with a preference for mobile-based content consumption.
Rooter’s financial performance demonstrates impressive growth. Its revenue from operations witnessed a staggering 6.5x increase during FY22, reaching Rs 11.38 crore, compared to Rs 1.74 crore in FY21. The company’s revenue experienced a substantial 4x growth in the past year, amounting to $7 million (Rs 56 crore) in annual recurring revenue (ARR), boasting an impressive gross margin of 80%. Rooter predicts that it will surpass the $10 million (Rs 82 crore) ARR milestone by the third quarter of this year and is confident in achieving profitability on or before April 2024.
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In the competitive landscape, Rooter faces rivals such as Loco, backed by Krafton and Lumikai, and Turnip, backed by Elevation Capital. Nevertheless, Rooter’s strong position in the market, its expanding user base, and the successful funding round position the company favourably for continued growth and success in the gaming and esports content sector.