Mayhem Studios, a mobile game development studio by MPL (Mobile Premier League), has raised $20 million in its Series A round led by Sequoia Capital along with Steadview Capital, Truecaller Investment, Hashed Emergent, and a few individuals.
The board at Mayhem Studios has passed a special resolution to issue 18,99,878 Series A preference shares at an issue price of $1.05 per share to raise $20 million, according to its regulatory filings.
Sequoia Capital spearheaded the round with $11.5 million while Steadview, Truecaller, and Hashed Emergent infused $3.5 million, $3.1 million, and $1 million respectively during the round.
Along with these major investors, Base Partners, Moore Strategic, and several individuals such as Tay Ruiwen, William Bingham, Nikhil Ragu, Ankit Kashyap, and others collectively poured in around $1 million.
Following the proceeds, MPL holds 54.3% of the company while Sequoia commands 19.2%. Mayhem’s chief executive officer Ojas Vipat’s holding stands at 12.3%.
As per Fintrackr’s estimates, the company has been valued at around $58 million (post-allotment).
Mayhem Studios develops AAA mobile games with big development and marketing budgets. Its maiden gaming title Underworld Gangs- a battle royale game made its debut in mid-2022.
The studio is currently a subsidiary of MPL which holds more than half of the company at the moment. Mayhem competes with several players including Dream11, Nazara Technologies, and others.
In June 2022, MPL forayed into web3 gaming with a new venture called GGX, to tap play-to-earn (P2E) gaming sector. As per media reports, MPL’s entry in the space is part of a larger plan to expand into skill-based real-money gaming and Mayhem Studios was a part of the expansion plan.
After witnessing 8X growth in its scale in FY21, MPL’s revenue grew only 29% to $65.6 million (Rs 497 crore) in the fiscal year ending March 2022. The firm’s losses widened 3X and neared the $150 million (Rs 1,130 crore) mark.
The fundraise of over Rs 160 crore is a reflection of the confidence the investors derive from the experience of the MPL team, besides the expanding gaming market and India’s emerging strengths in that market.