Lumikai Raises $50 Million for Second Gaming VC Fund, Focusing on India’s Gaming and Interactive Media Sector,Mumbai-based venture capital fund, Lumikai, has announced the launch of its second fund, aiming to secure $50 million in investments from around the world. The fund will be dedicated to supporting promising entrepreneurs in India’s gaming and interactive media sector, providing funding from pre-seed to Series A stages.
To further strengthen its position in the Indian market, Lumikai is actively seeking domestic investments by establishing a dedicated alternative investment fund of $10 million for Indian limited partners. By combining global and local investments, Lumikai aims to foster growth and innovation within India’s gaming industry.
The new fund has already garnered support from notable investors, including South Korea’s Krafton and Smilegate, Japan’s Mixi and Colopl, and Finland-based decacorn Supercell. Indian gaming startup Nazara and the family offices of Jeejeebhoys, KCT Group, DSP Kothari, and Sattva Group have also joined as investors.
In addition to institutional investors, Lumikai has attracted prominent high net-worth individuals (HNIs) such as Ben Feder, former CEO of Take-Two Interactive; Jon Vlassopulos, CEO of Napster; Pankaj Gupta, founder of Gulf Islamic Investments; and Akshat Rathee, founder of Nodwin Gaming, who have participated in the fundraise, further validating Lumikai’s mission.
Salone Sehgal, Founding General Partner of Lumikai, expressed optimism about the launch, saying, “Over the course of the last three years, we have witnessed over 1,400 deals and seen the industry attract investor interest, deepen founder quality, and achieve liquidity events. We continue to remain bullish on the long-term potential of the India interactive market, and this is our opportunity to build on the foundation we have laid.”
The focus of Lumikai’s second fund will be on identifying and investing in 18-20 leading ventures across five key areas: gaming content and digital media, companies leveraging applied game mechanics and interactive touchpoints, user-generated content (UGC) platforms and the creator economy, tools, technology, and infrastructure, and frontier bets such as generative AI, mixed reality, virtual identities, and edge computing. Salone Sehgal, Founding GP of Lumikai, emphasized the fund’s commitment to these categories.
Fund II has already completed its first close and has a robust pipeline of planned investments. Three deals are currently at the term sheet stage, involving industry veterans leading companies focused on content, platforms, and frontier areas.
Justin Shriram Keeling, Founding General Partner at Lumikai, highlighted the fund’s purpose, stating, “Lumikai was created ground-up to be a focal point for the next generation of superstar gaming and interactive media founders. These sunrise sectors have seen tremendous tailwinds since we launched the fund, and we are privileged to have a front-row seat in this revolution.”
Lumikai initially launched its first fund, valued at $40 million, in 2020. Since then, the fund has provided support to various gaming and interactive media startups, including Elo Elo, Studio Sirah, Loco, Bombay Play, Buystars, House of X, Gigafun Studios, and others. With the introduction of Fund II, Lumikai aims to continue its positive influence on India’s gaming and interactive media landscape.
The announcement of Lumikai’s second fund signifies the growing recognition of India’s gaming industry as a thriving sector ripe for investment. As Lumikai continues to attract capital from both global and local sources, it is expected to play a pivotal role in shaping the future of India’s gaming and interactive media ecosystem.
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