Loco Sells Majority Stake to Redwood in $65M Deal

The Indian game streaming platform Loco has finalized a deal to sell a majority stake to Redwood, a newly established investment firm. The transaction, valued at $65 million, marks a significant transition for the startup as it pivots its strategy toward international growth.

A Strategic Pivot for Global Expansion

The $65 million investment serves a dual purpose: it provides a full exit for all existing backers of the company and supplies the necessary capital to fuel Loco’s international expansion efforts. While the platform established its roots in the Indian market, the leadership team is now prioritizing opportunities in regions where major competitors, such as Amazon-owned Twitch, have yet to gain a firm foothold.

Founders Anirudh Pandita and Ashwin Suresh expressed optimism regarding the new phase of the company. In a joint statement, they noted: “This investment is a recognition of the immense work done by our team in the past few years. Gaming is an integral part of the cultural zeitgeist globally, and we look forward to building a platform that is at the heart of this global movement. Livestreaming enables authentic connection in a way that other mediums can’t match, and we want to put the fan at the center of this experience.”

Market Realities and Valuation

The deal reflects a recalibration of the startup’s valuation, which peaked at nearly $150 million in 2022. Industry observers point to the broader challenges faced by esports streaming entities within India, where revenue generation has been hindered by a limited selection of popular titles capable of sustaining high-engagement streaming ecosystems.

This transaction follows another major divestment for the founders this year: the sale of their sister property, Pocket Aces, which saw a majority stake acquired by the music label Saregama in a $40 million deal.

Platform Ecosystem and Revenue Model

Loco’s business model has historically relied on licensing agreements with major game publishers and direct monetization through viewer-purchased virtual goods. The platform currently hosts streams for a variety of popular titles, including:

• Grand Theft Auto V
• Battlegrounds Mobile India
• Call of Duty: Infinite Warfare
• Free Fire
• Valorant

Supported by a roster of previous investors such as Krafton, Catamaran Ventures, and Hashed, the startup’s objective remains to leverage its “first-mover advantage”—a strategy outlined in a 2022 investor pitch deck—to establish a sustainable, community-driven streaming platform on a global scale.