Funstop Games, a prominent gaming studio, has successfully raised $5 million in its Series A funding round, led by 360 ONE Asset. The funding round also saw participation from existing investor InfoEdge Ventures.

Strategic Growth Plans

The newly secured capital will enable Funstop Games to strengthen its ad-tech capabilities and expand its diverse portfolio of games. The company has expressed plans to introduce more titles, particularly focusing on the growing spiritual gaming segment.

Founded in 2020 by Prashanth Vijay and Tamesh Sharma, Funstop Games has shown notable growth, reporting $4 million in revenue and building a robust catalog of over 30 games. The studio has gained widespread recognition with hits like “Airport Rush” and “Perfect Time”, which have collectively surpassed 75 million downloads, contributing to a global total of over 100 million downloads.

“This investment gives us the resources to scale our operations, expand our portfolio, and bring uniquely Indian storytelling to a global audience,” said cofounder Tamesh Sharma.

Industry Landscape and Challenges

Funstop Games’ milestone comes at a time of rapid growth in the Indian gaming sector. According to recent reports, approximately 90 million gamers in India paid for online games last year, highlighting the potential within a market known for its price sensitivity. The total number of online gamers in India reached 455 million in 2023 and is projected to grow to 491 million by the end of 2024.

While gaming startups like Dream11, MPL, and Games24X7 have joined India’s unicorn club, the industry faces regulatory challenges. The imposition of a 28% GST on real money gaming has posed significant hurdles. Despite this, investor interest in Indian gaming remains strong. Venture capital firms, both global and domestic—such as Lumikai and Nazara Technologies—are actively investing.

Nazara Technologies, a key player in the sector, recently acquired a 47.7% stake in Moonshine Technology, the parent company of Pokerbaazi, in a secondary transaction worth INR 831.5 crore. The company also purchased a 15.86% stake in gaming community platform GetStan Technologies for INR 18.4 crore (approximately $2.2 million).

Conclusion

Funstop Games’ Series A funding marks a significant step forward in its mission to innovate and expand in the competitive gaming landscape. By leveraging new investments, the studio aims to enrich its game offerings and bring distinctive Indian narratives to a wider global audience.

Source : Inc42