Decentralised gamer network KGeN bags $10 mn funding led by Aptos Labs; valuation jumps to $500 mn

KGeN founders Manish Agarwal (L) and Ishank Gupta (R) (Image source: Accel)

KGeN (Kratos Gamer Network), a decentralised gamer network co-founded by gaming veteran Manish Agarwal, announced on November 20 that it has raised $10 million funding in an ecosystem round led by blockchain developer Aptos Labs.

The financing, which also saw participation from blockchain firm Polygon and Web3 gaming network Game7, comes amid renewed optimism in the Web3 gaming sector. With this, KGeN has raised a total $30 million to date.

The latest investment values KGeN at $500 million on a fully diluted basis, a significant jump from its previous valuation of $150 million when it raised $20 million financing led by venture capital firm Accel and participation from investors such as Prosus Ventures, Courtside Ventures, Nexus Venture Partners, and Nazara Technologies among others in February 2023.

KGeN plans to use the funds raised to scale its platform, introduce new features, and expand its presence in emerging markets. The company said its forthcoming initiatives include broadening the scope of its data capabilities, strengthening partnerships with game developers, and enhancing rewards and benefits for gamers.

The startup said this expansion will support its mission to create a more "equitable and dynamic gaming ecosystem", where players have greater control and opportunities to monetise their digital experiences.

"KGeN is driving a major shift in how gamers own and control their data," said Mo Shaikh, CEO of Aptos Labs.

"In an industry where players often lack control, KGeN is giving them true ownership of their digital identities. We’re proud to support KGeN as they set a new standard for data ownership and use," he said.

Agarwal, who previously served as the CEO of the diversified gaming and sports media firm Nazara Technologies, co-founded Kratos Studios with angel investor Ishank Gupta in early 2023, after acquiring Polygon Labs-backed IndiGG. The firm currently operates across India, Brazil, Nigeria, Southeast Asia, and the Middle East and North Africa (MENA) region.

The startup is building a decentralised gamer network that aims to make gamers the owners of their data. It said the firm has been aggregating millions of micro-gaming communities across emerging markets since 2022 and onboarding them to Web3 to create a Proof of Gamer Engine and The Kratos Gaming Network (KGeN).

The Proof of Gamer (POG) Engine enables gamers to build, own, and monetise their gaming reputation. The company claims that POG has already captured over 197 million gamer attributes across 93 data points. KGeN claims to currently have 10.8 million gamers, 3.3 million of whom are monthly active users, with India, Brazil, and Nigeria as its key markets.

Game publishers and blockchain developers can leverage KGeN's data repository and advanced targeting capabilities to gain insights into gamer behavior and engage with relevant gamer cohorts. This allows them to drive both user acquisition and digital asset sales with pinpoint accuracy, the firm said in a statement.

KGeN stated that its integration of Web2 and Web3 ecosystems also helps developers to deliver an engaging gaming experience. By utilising data-driven insights and acquisition methods, KGeN’s partners have achieved a 30-60 percent reduction in customer acquisition costs (CAC), thereby improving the effectiveness of their marketing efforts, the firm said.

According to the company website, KGeN has clocked an annualised revenue of $12.1 million as of October 2024.

“Aptos Labs’ roots at Meta give them a unique understanding of building communities and leveraging data to help businesses grow. Perhaps, that drives their confidence in our framework that flips the script where users truly own their data” Agarwal said.

“With this partnership, we're set to scale the multi-chain POG engine. Our goal is to code a new paradigm for game publishing - one that's not just profitable, but fundamentally fairer. We're building a future where gamers have real control over their digital identities and benefit from it," he said.