Lumikai launches $50 million investment fund for gaming, interactive media

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Lumikai, a gaming-focused venture capital has launched a $50 million gaming, interactive media fund to invest in gaming companies which includes investment from BGMI developer Krafton, Nazara Tech, Take-Two Interactive, Napster’s CEO Jon Vlassopulos, and Supercell.

According to data from the national investment promotion agency Invest India, the Indian gambling industry has raised $2.8 billion from both local and foreign investors in the previous five years. Back in 2020, Lumikai raised $40 million which helped funding startups like Loco, Elo Elo, and Bombay Play.

Founding general partner at Lumikai, Justin Keeling said, “There’s been a lot of inbound interest from global investors into the India market,” in a statement to Reuters. Furthermore, the capital will be used in series A investments of India’s gaming and interactive media markets.

Lumikai have mainly focused their investment in casual gaming firms, with Keeling saying, “I think the regulatory environment in RMG has only started clearing up now. We are a diversified player, so we won’t discount investments in RMG entirely.”

Co-founder of Nodwin Gaming and a limited partner in Lumikai’s Fund II, Akshat Rathee said, “The Indian gaming industry is not just pre-revenue products and the deployment should be pragmatic. Access to capital for middle stage companies with a good model will help them scale phenomenally.”

According to analysts, the country’s large youth population, rising disposable incomes among the more wealthy, and more smartphone sales are driving the gaming market’s expansion. A previous report by Deloitte India and Lumikai revealed that the county have over 500 million gamers.

Deloitte also recently revealed that India is now the largest fantasy sports market in the world, with over 13 crore users. The government also recently announced new amendments to online gaming rules, which might provide a solid clarification and encourage further investment in the sector.