After rebranding its gaming platform GamePind as ‘Paytm First Games’, homegrown fintech company PayTM has raised an additional $20 million for its gaming platform. The backers in this round of funding, include Alibaba’s AGTech and Paytm’s parent company One97 Communications.
This latest investment is going to help PayTM ramp up its technology,scale operations and work on robust marketing even as it looks to attract more users. Additionally, in August 2019, the company said that it was looking to raise close to $25 million in funding.
Paytm plans to utilise this investment to scale the operations, invest in technology and indulge in marketing activities to attract more users. The company aims to be the “largest gaming platform which in-turns make gaming a rewarding experience for our users,” said Sudhanshu Gupta, COO of Paytm First Games.
The company is also looking to increase its current team size of over 150 people and while adding up to invest in technology and building of e-sporting events.
Paytm First Games was launched as GamePind last year in February 2018 and rebranded in June this year to add service on its paid subscription plan ‘Paytm First’. Gamepind had claimed to host over 300 games and quizzes for the gaming enthusiasts, and generating the gross merchandise volume (GMV) of INR 20 crore($2 million)monthly, till last year.
In the prior funding round led by the current backers AGTech and One97 Communications, the company had raised $16 million in August 2018. The company has since then, grown to achieve 10 million monthly transactions and an annual revenue of $50 million. The company also added that they have over 35 million registered users, who play both paid and free games.
In the last six months, we have launched several games across different genres and the response has been encouraging. We now have more than 35 million registered users playing their favorites games including the paid ones like Rummy and Fantasy Cricket.”
As to a report by consulting major KPMG and the industry’s self-regulatory body, Indian Federation of Sports Gaming, the online gaming industry in India is expected to generate a revenue of INR 11,900 crore by FY2023, growing at a rate of 22% in CAGR.
Vijay Shekhar Sharma, the founder and CEO of Paytm has been looking to expand its service portfolio through backers and partnerships across various verticals. Recently, the company has also partnered with Clix Finance in order to work into the digital lending space. Also Paytm Mall is in a partnership with global ecommerce giant Ebay as it strives to expand its catalogues and plan its entry into newer markets.