Video game streaming platform Loco has raised $9 million in a funding round led by Krafton, which distributes PUBG in India, and gaming media fund Lumikai.
Hiro Capital, Axilor Ventures, and 3one4 Capital also participated in the financing round, Bloomberg reported citing a statement.
This is South Korean gaming firm Krafton's first investment in India.
Mumbai-based Loco will be spun off as a separate entity from parent company Pocket Aces.
Loco will use the funds to improve the streaming technology and content.
Loco Interactive Pte Ltd was founded by Anirudh Pandita and Ashwin Suresh.
In the past year, the company's monthly active users has grown six times and monthly active streamers increased 10 times, according to the Bloomberg report.
"Cheap data and inexpensive phones brewed a perfect situation in India, creating a completely new category of entertainment," Pandita said, as quoted by the business news website.
"Over 100 million monthly active users in India engage with these games, imagine a 100 million people playing a sport that no one's watching -- that's what Loco set out to solve for," he said.