Games and Interactive Media Venture capital You can also contact us for more information. Lumikai According to the founding general partner of its India Fund II ($50 million), it aims to make 10-12 investments into pre-seed or Series A companies over the next couple years. Salone Sehgal.
Sehgal, a VC, told ET that the firm manages $58 million from assets raised by 15 portfolio companies. These firms have raised more than $100 million collectively. Sehgal told ET that, despite being a seed stage investor, over 70% of the portfolio companies have generated revenue.
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Lumikai launched its first fund in 2020 and invested $40 million into gaming startups including Loco Elo Elo Bombay Play. It has also led recent funding rounds for Vobble, Autovrse, and QuriousBit, as part of Fund II announced in 2018.
According to Sehgal, the VC firm has a particular interest in interactive media sectors such as content and platforms, including social gaming, mixed reality, and spatial computing, as well as system of play, which includes edtech, healthtech and fintech.
Sehgal stated that “India’s media and entertainment industry is roughly a 25 billion dollar revenue pie. Of this, $12 billion comes from new media including audio/video games, interactive, esports animation, VFX etc.” This revenue pie will grow to around $30 billion.
As capital from other sources, including the gaming industry, has flooded into India’s gaming sector, there is interest in India’s game developers. Mutual Fund SBI, Kamath Brothers, Japanese entertainment firm MIXI Inc., Sony Interactive EntertainmentKratos Studios is also included.
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The biggest problem for developers was the lack of risk capital. This established talent that was outside India has now returned to India, thanks to the capital released in the past 2-3 years.
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The early use of artificial intelligence in the game industry has been noted, she said, in such areas as marketing materials, concept art, testing, bugging, detection of changes in multi-player games, data mining and real-time analytics, as well as images enhancements.
Sehgal stated that real-money gaming is only a sub-sector of new media worth $2 billion, which had already reached its peak in India. It would therefore not represent a blue-ocean chance for a Lumikai-like early-stage VC company.
We are looking for opportunities to create category leadership in the next five-10 years. Sehgal stated that this (RMG), a market which exploded in 2015, reached its peak between 2018 and 2019, when it was dominated by large incumbents. So would it be a red or blue ocean?
Lumikai The RMG sector has seen its forecasted growth cut. By 2028, its market share will drop to 32%, from the previous 25%.