Gaming and esports content platform Rooter has raised $16 million in a growth round led by Lightbox. The round saw Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures join Rooter’s captable.
The Delhi-based startup has raised $46 million to date including a $25 million Series A funding round led by Lightbox in January last year.
A mix of debt and equity, the latest capital infusion will accelerate Rooter’s growth trajectory, help strengthen its technology capabilities and boost market expansion, the company said in a press release. It will also be pursuing cross-border growth opportunities and potential strategic acquisitions.
Founded in 2016 by Piyush Kumar and Dipesh Agarwal, Rooter is home to more than a million gaming creators and counts gaming teams including Skyesports, Orange Rock, Chemin Esports, Revenge Esports, and Orangutan among others. With over 60 million user base, the platform’s content library includes a mix of live streams, short-form content, and videos across more than 10 Indian languages.
The company aims to serve markets that mirror India with its sizable gaming audiences and preference for mobile-based content consumption and plans to formally expand its presence across Southeast Asia and MENA region.
Rooter’s revenue from operations grew 6.5X to Rs 11.38 crore during FY22 in contrast to Rs 1.74 crore in FY21. The company claims that its revenue grew 4x in the last year to $7 million (Rs 56 crore) ARR with a gross margin of 80%. As per the company, it will cross $10 million (Rs 82 crore) ARR by the third quarter of this year and is on the path to hitting profitability on or before April 2024.
The company competes with Krafton and Lumikai-backed Loco and to some extent with Elevation Capital-backed Turnip.