Mobile game publisher Felicity Games announced on March 11 that it has raised $3 million (Rs 25.8 crore) in a seed funding round led by 3one4 Capital, underscoring the rising investor interest in India's gaming sector.
The round also saw participation from investors such as Singapore's T-Accelerate Capital and Japan's MIXI Global Investments, along with existing backers DeVC and Visceral Capital.
Felicity Games plans to use the funds raised to expand its publishing infrastructure and deepen its relationships with Indian game studios. It also plans to use the capital to test additional games by the end of 2025.
Founded in 2023 by Anurag Choudhary, Felicity Games helps studios launch, optimise, and scale their games across the world by combining data-driven insights with a strong execution model. The startup specialises in hybrid-casual games, partnering with over 10 Indian studios to test and scale several games in 2024.
"At Felicity, we take a tech-driven, execution-focused approach to systematically identify and scale global hits. By tapping into India’s studio ecosystem and top global talent in UA (User Acquisition), Monetisation, and Live Ops, we’re accelerating learning and innovation" Choudhary said.
Felicity Games claims to have surpassed $1 million in annual recurring revenue (ARR) and crossed one million downloads across its top-performing titles - Seek & Find and Nova Solitaire. In February, the company claims to have generated $100,000 in gross revenue in February, registering a four-fold increase from November 2024.
"The gaming industry has changed significantly, with mobile adoption and new advertising rules reshaping how games are built, discovered, and monetized. These shifts create opportunities for new companies to emerge" said Sonal Saldanha, Vice President at 3one4 Capital.
"Felicity is taking a first-principles approach to building a substantial gaming business from India by leveraging exceptional talent, operational efficiency, and rapid execution" he added.
The Bengaluru-based startup also counts Swiggy co-founders Sriharsha Majety and Nandan Reddy, Cred founder Kunal Shah, and Kratos Studios co-founder Manish Agarwal among its backers.
India is the fastest-growing games market in Asia, both in terms of revenue and gamers, according to Niko Partners, a market research and consulting firm that covers video games, e-sports and streaming in the continent.
The combined mobile, PC and console gaming revenue is projected to surpass $1 billion in revenue in 2025, up 13.6 percent from $943 million in 2024. It is expected to touch $1.4 billion in 2028, growing at a five-year compound annual growth rate of 11.1 percent. These figures do not include revenues from real-money games or exports.
The country's overall gaming industry clocked $3.1 billion in revenue in FY23, registering a 19 percent growth from $2.6 billion in FY22. The sector is expected to touch an estimated $7.5 billion by FY28, according to a report from Lumikai, a gaming and interactive media-focused venture fund.
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