Redwood Acquires Majority Stake in Indian Game Streaming Platform Loco for $65 Million

UAE-based Redwood has officially acquired a majority stake in the game streaming platform Loco through a $65 million deal. This strategic move aims to help Loco expand its focus to international markets. Previously, Loco was valued at nearly $150 million in 2022, but the valuation has since dropped due to challenges within the Indian esports streaming sector, particularly in generating revenue amidst a limited number of popular games.

A New Chapter for Loco

Loco is now turning its sights towards global opportunities, signaling a shift in strategy. The founders, Anirudh Pandita and Ashwin Suresh, expressed their gratitude for the investment, highlighting the hard work of their team. They stated, "Gaming is an integral part of the cultural zeitgeist globally, and we look forward to building a platform that is at the heart of this global movement."

Recent Developments

This acquisition follows the recent sale of Loco’s sister property, Pocket Aces, which sold a majority stake for $40 million to Indian music label giant Saregama earlier this year. Loco aims to create a Twitch-like platform targeting markets where Twitch has either not expanded or has limited penetration.

Monetization Strategies

Gamers on Loco stream popular titles like “Grand Theft Auto V”, “Call of Duty: Infinite Warfare”, and “Valorant”. Streamers earn revenue through virtual goods purchased by viewers. The platform has also secured licensing deals with major game publishers such as Krafton, Activision, and Riot, leveraging a first-mover advantage in the market.