{"id":24460,"date":"2024-04-12T00:50:48","date_gmt":"2024-04-12T00:50:48","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/12\/vc-lumikai-eyes-10-12-deals-via-india-fund-ii\/"},"modified":"2024-04-12T00:50:48","modified_gmt":"2024-04-12T00:50:48","slug":"vc-lumikai-eyes-10-12-deals-via-india-fund-ii","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/12\/vc-lumikai-eyes-10-12-deals-via-india-fund-ii\/","title":{"rendered":"VC Lumikai eyes 10-12 deals via India Fund-II"},"content":{"rendered":"
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Gaming and interactive media venture capital<\/a> firm Lumikai<\/a> is aiming to close 10-12 investments in pre-seed and Series A firms over the next few years from its $50-million India fund II, according to its founding general partner, Salone Sehgal<\/a>.<\/p>\n

The VC firm has $58 million in assets under management from 15 portfolio companies, which have collectively raised more than $120 million, Sehgal told ET. “Even though we’re a seed-stage investor, more than 70% of our portfolio companies are revenue generating.” <\/p>\n

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Lumikai\u2019s first fund, launched in 2020, allocated $40 million in gaming startups, including Loco, Elo Elo and Bombay Play. More recently, it led funding rounds in Vobble, Autovrse and QuriousBit as part of Fund II, which was announced last year.<\/p>\n

The VC firm is particularly bullish on interactive media sub-sectors such as content (game development), platforms (interactive audio, social entertainment gaming), tools and technology infrastructure (in mixed reality and spatial computing) as well as systems of play (in ed-tech, health-tech, fintech), according to Sehgal.<\/p>\n

\u201cMedia and entertainment India is about a $25 billion revenue pie, of which $12 billion is new media, including interactive, audio\/video, games, esports, animation, VFX, etc,\u201d Sehgal said. \u201cAnd that revenue pie is expected to grow to about $30 billion.\u201d<\/p>\n

There\u2019s interest in India\u2019s game developer talent as abundance of capital has started flowing into the gaming industry from newer corners, such as the SBI Mutual Fund<\/a>, Kamath brothers<\/a>, Japanese entertainment firm MIXI Inc., Sony Interactive Entertainment<\/a>, as well as Kratos Studios.<\/p>\n

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\u201cThe biggest pain point was risk capital for developers. Now, when capital unlocked in the last 2-3 years, this established talent which had been sitting outside India is shifting back,\u201d Sehgal said, adding that there have been close to 2,000 deals in the game development studios, compared with only 25 four years ago.Also read | Nazara Technologies sets aside $100 million for acquisitions<\/a><\/p>\n

She said there\u2019s been early adoption of generative artificial intelligence tools in game development in areas such as concept art, marketing collaterals, testing, debugging, change detection in multiplayer games, data mining, real time analytics as well as image enhancements.<\/p>\n

On real money gaming, Sehgal said it is only a $2 billion sub-sector among new media which has already peaked in India and would not be a \u201cblue-ocean opportunity\u201d for an early-stage VC firm like Lumikai.<\/p>\n

\u201cWe seek opportunities for creating category leadership over the next 5-10 years. This (RMG) is a space that mushroomed in 2015, hit its peak in 2018-19 when there were very large, well established incumbent players,\u201d Sehgal said. \u201cSo would that be a blue-ocean or a red-ocean?\u201d<\/p>\n

Lumikai has already cut its growth forecast for the RMG segment<\/a> to 5% over next five years, down from 25% previously, with its share in the overall market reducing to 32% by the 2028 fiscal.<\/p>\n<\/div>\n


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Gaming and interactive media venture capital firm Lumikai is aiming to close 10-12 investments in pre-seed and Series A firms over the next few years from its $50-million India fund II, according to its founding general partner, Salone Sehgal. The VC firm has $58 million in assets under management from 15 portfolio companies, which have […]<\/p>\n","protected":false},"author":2,"featured_media":24461,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[2699,1587,29631,273,29627,29626,13951,29628,29630,29629,2285],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/24460"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=24460"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/24460\/revisions"}],"predecessor-version":[{"id":24462,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/24460\/revisions\/24462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/24461"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=24460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=24460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=24460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}