Online gaming firm Zupee has raised $8 million in its Series A funding round led by Matrix Partners India as it looks to expand its user base.
Falcon Edge Capital, WestCap Group, Orios Venture Partners and Zupee’s early stage investor Smile Group also participated in the latest round.
The funds raised will be used to increase the company’s user base and invest in strengthening technology, team and marketing, Dilsher Singh Malhi, CEO of Zupee, told ET.
The startup, founded by Malhi and Siddhant Saurabh in 2018, runs live quiz tournaments on its app where users compete with friends and other players for prizes.
The capital raise comes at a time when online gaming firms have seen a spike in user base due to the ongoing Covid-19 lockdown. According to Nasscom, India’s mobile gaming market will reach 628 million users this year.
The app has over 2,000 live quiz tournaments running in a day, covering over 100 topics that range from Bollywood, Hollywood, sports, math and spelling, among others. The app has over 5 million registered users on the platform and clocks over 10 million gameplays in a month.
Last year, Zupee had raised $1 million in seed funding from Smile Group, which incubated the startup.
The market value of mobile gaming in India is estimated to reach approximately $405 million by 2022, according to market research firm Statista.