Rooter, a prominent platform for game streaming and esports, has announced the successful closure of a $16 million (approximately ₹131 crore) growth funding round led by its existing investor, Lightbox. This funding round also included contributions from Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures, alongside participation from existing backers such as Duane Park Ventures, LeAD Sports & Health Tech Partners, ADvantage VC, Goal Ventures, Capital A, and Astarc Ventures.
While the funding comprised both debt and equity, Rooter has opted not to disclose the precise breakdown. This announcement follows the company’s previous achievement of raising $25 million in a Series A funding round, which was also spearheaded by Lightbox, March Gaming, and Duane Park Ventures. To date, Rooter has amassed a total of $46 million in funding.
The New Delhi-based startup plans to utilize the newly acquired funds to enhance its technology infrastructure and broaden its reach in Southeast Asia, the Middle East, and North Africa (MENA). Founded in 2016 by Piyush Kumar and Dipesh Aggarwal, Rooter’s content library features a diverse array of live streams, short videos, and other content available in ten Indian languages. The company has reported a remarkable fourfold increase in its annual recurring revenue (ARR), reaching $7 million with an impressive 80% gross margin. Rooter is targeting profitability within the next year.
“We anticipate surpassing $10 million in ARR by the next quarter and aim to achieve profitability by April 2024. This funding will empower us to enhance our technology infrastructure and explore both organic and inorganic growth opportunities,” stated Piyush Kumar, founder and CEO of Rooter.
The startup has successfully onboarded one million gaming creators, contributing to a user base of 60 million. Sid Talwar, a partner at Lightbox, noted that “Rooter has successfully scaled its operations while maintaining a solid balance sheet and robust unit economics.”
Lightbox, known for its investments in successful startups such as Rebel Foods, Dunzo, and Paymate, recently announced a delay in launching its fourth fund, choosing instead to focus on exits from its first two funds in the coming months. Currently, it is deploying capital from its $200 million third fund, which was initiated in 2018 and has invested in nine companies to date.