Rooter has raised $16 million in a growth round led by Lightbox. The round saw Trifecta Capital, Pivot Ventures, Baldota Family Office, Global Play Media, Denlow Private Trust, Venture Catalysts, and Potential Ventures join Rooter’s captable. The round was a combination of debt and equity and witnessed existing investors Duane Park Ventures, LeAD Sports and Health Tech Partners, ADvantage VC, Goal Ventures, Capital A and Astarc Ventures re-iterate confidence in the company.
Speaking on the investment Piyush Kumar, founder and CEO, Rooter said, “Our user-centric, tech-driven approach has helped us double our active userbase and scale our market footprint without compromising on sustainability. With more than a sufficient runway, we are expecting to cross a $10 million accounting rate of return (ARR) by the next quarter and hit profitability by April 2024.”
According to the company, in the last 12 months, the company has emerged as one of the leaders in India’s game streaming and esports content category, achieving four times revenue growth to $7 million ARR at 80% gross margin. Funds will be utilised to strengthen its technology capabilities, sharpen its product bouquet, and further enhance user experience on its platform. It will also be pursuing market expansion and cross-border growth opportunities, including potential strategic acquisitions.
“Rooter has a strong vision and a highly capable team that has not only demonstrated its ability to deliver results and growth but to also adapt, improvise, and innovate to stay ahead of the market. We particularly like how Rooter has placed itself at the intersection of the needs of brands, streamers, and viewers in the highly dynamic gaming content and esports streaming category they operate in and the success they have found in suitably monetising these avenues,” said Abhishek Gupta, partner, Trifecta Capital.
The company aims to serve markets that mirror India with its sizable gaming audiences and preference for mobile-based content consumption and plans to formally expand its presence across southeast Asia and MENA region. The funding will be directed to identify technology partners that can enable Rooter to enhance ecosystem capabilities at a rapid scale.