Indian game streaming startup Loco is selling a large portion of Redwood

UAE-based Redwood has acquired a majority stake in game streaming platform Loco as the Indian company looks to expand its focus on international markets, TechCrunch has learned and confirmed.

Redwood, a newly formed investment firm, has signed a $65 million deal with Loco, an investment that also provides a full exit for all existing Loco backers.

This decline in Loco’s peak value of nearly $150 million by 2022 reflects the broader struggles among Indian esports broadcasters to monetize, a challenge created by the limited number of popular games in the market.

Loco now sees a much bigger opportunity outside of India and the new deal will boost its “global expansion efforts,” the startup told TechCrunch.

“This investment is a recognition of the great work our team has done over the past few years,” Loco founders Anirudh Pandita and Ashwin Suresh told TechCrunch in a joint statement.

“Gaming is an important part of the global cultural zeitgeist, and we look forward to building a platform at the heart of this global movement. Live streaming enables true connection in a way that other speakers cannot match and we want to put fans at the center of this trend.”

The deal follows the sale of Loco’s sister property, Pocket Aces, which sold a majority stake for $20 million to Indian music company Saregama earlier this year.

Backed by investors including Catamaran Ventures, Krafton, and Hashed, Loco aims to build a Twitch-like platform and serve markets where the Amazon-owned service doesn’t expand or has weak penetration. On its platform today in the Indian market, players stream titles such as “Grand Theft Auto V”; “Call of Duty: Infinite Warfare”; “Battlefields in India”; “Free Fire”; and “Valorant.”

Broadcasters on the platform earn revenue from physical goods purchased by viewers. The startup has licensing deals with several game publishers, including Krafton, Activision and Riot, based on what the 2022 pitch deck for investors describes as “first-mover advantage.”