Web3 gaming startup Kratos Studio raise up Rs 160 crore in seed funding
Kratos Studios, a web3 game firm, reported raising Rs 160 crore in a seed round that was led by Accel and included Prosus Ventures, Courtside Ventures, Nexus Venture Partners, Nazara Technologies, and other investors. This will be one of the largest seed rounds for an Indian firm, and its timing is significant given that investors have sharply scaled back their expectations for the funding boom of 2021.
The business is valued at Rs 1,200 crore in the initial phase. Manish Agarwal and Ishank Gupta, the co-founders of Kratos Studios, also recently finalised the acquisition of gaming company IndiGG from Yield Guild Games (YGG) through a token swap, which is the equivalent of a stock swap for decentralised autonomous organisations (DAOs). According to Agarwal, IndiGG would use the capital to create a product platform, assist gaming teams, foster communities, and establish a worldwide reputation through IPs and Web3 e-sports events.
The four sectors listed above are where the money will be used, he said. But more crucially, we want to generate operating cash flows more quickly so that this fund will be available for a rainy day rather than being burned. Even though the company can grow the community by 100 times, according to Agarwal, there will be a churn in the community if the platform's capacity is just 5% utilised. In a two-sided market, "percentage capacity utilisation is quite essential," he continued.
Agarwal and Gupta will continue to collaborate closely with With YGG's co-founder Gabby Dizon and Polygon's co-founder Sandeep Nailwal, who has invested in YGG, according to a statement from IndiGG, in order to create the biggest gaming DAO in the entire world. "Blockchain can fundamentally revolutionise gaming and accelerate growth in new areas," said Subrata Mitra, a partner at Accel. We think that this group is most placed to help gamers realise this value.
Agarwal stated that the accessibility of high-caliber games was essential to the model's success while speaking about the difficulties the ecosystem would encounter over the ensuing six to seven years. It is crucial for us to have a variety of high-caliber games with intricate advancement mechanisms, he stated. The company has 106 titles in its portfolio, of which 40–44 are in alpha–beta stage and the remaining are under development, he continued. 15 of the 40–44 games are currently playing on our platform, he said.
He also hinted that the platform's development will require a consistent flow of games. "Games were previously created for a closed ecosystem, but as assets become more interoperable, the ecosystem is becoming more open. Also, it takes a long time to develop an open environment. The $140 billion Web2 gaming sector as it stands now won't be completely disrupted overnight. New, high-quality games won't be available for 12 to 24 months, he noted.
Another element is the laws that govern virtual digital assets. "We must comprehend the framework and the means by which it will be made possible. The third issue is that it can be very difficult for a user to adopt Web3 games. Last but not least, knowing who will pay the various fees and how unit economics work is also a barrier. For the disruption to take place and for nations like India to emerge as gaming powerhouses, all of these obstacles must be overcome, according to Agarwal.
The business is valued at Rs 1,200 crore in the initial phase. Manish Agarwal and Ishank Gupta, the co-founders of Kratos Studios, also recently finalised the acquisition of gaming company IndiGG from Yield Guild Games (YGG) through a token swap, which is the equivalent of a stock swap for decentralised autonomous organisations (DAOs). According to Agarwal, IndiGG would use the capital to create a product platform, assist gaming teams, foster communities, and establish a worldwide reputation through IPs and Web3 e-sports events.
The four sectors listed above are where the money will be used, he said. But more crucially, we want to generate operating cash flows more quickly so that this fund will be available for a rainy day rather than being burned. Even though the company can grow the community by 100 times, according to Agarwal, there will be a churn in the community if the platform's capacity is just 5% utilised. In a two-sided market, "percentage capacity utilisation is quite essential," he continued.
Agarwal and Gupta will continue to collaborate closely with With YGG's co-founder Gabby Dizon and Polygon's co-founder Sandeep Nailwal, who has invested in YGG, according to a statement from IndiGG, in order to create the biggest gaming DAO in the entire world. "Blockchain can fundamentally revolutionise gaming and accelerate growth in new areas," said Subrata Mitra, a partner at Accel. We think that this group is most placed to help gamers realise this value.
Agarwal stated that the accessibility of high-caliber games was essential to the model's success while speaking about the difficulties the ecosystem would encounter over the ensuing six to seven years. It is crucial for us to have a variety of high-caliber games with intricate advancement mechanisms, he stated. The company has 106 titles in its portfolio, of which 40–44 are in alpha–beta stage and the remaining are under development, he continued. 15 of the 40–44 games are currently playing on our platform, he said.
He also hinted that the platform's development will require a consistent flow of games. "Games were previously created for a closed ecosystem, but as assets become more interoperable, the ecosystem is becoming more open. Also, it takes a long time to develop an open environment. The $140 billion Web2 gaming sector as it stands now won't be completely disrupted overnight. New, high-quality games won't be available for 12 to 24 months, he noted.
Another element is the laws that govern virtual digital assets. "We must comprehend the framework and the means by which it will be made possible. The third issue is that it can be very difficult for a user to adopt Web3 games. Last but not least, knowing who will pay the various fees and how unit economics work is also a barrier. For the disruption to take place and for nations like India to emerge as gaming powerhouses, all of these obstacles must be overcome, according to Agarwal.
