Liquidnitro Games bags $5.25-million seed funding from Nexus Venture Partners

(L-R) Liquidnitro founders Suresh Manthena, Arun Kunchala, Sandeep Kowdley, Krishna Dhanekula

Liquidnitro Games, a Hyderabad-based live service and game production studio, said on March 20 that it has raised $5.25 million in seed funding led by Nexus Venture Partners, underscoring the growing investor interest in Indian gaming studios.

The round also saw participation from game industry veterans from the United States, Canada, European Union and India, the company said in a statement.

Liquidnitro Games was started in December 2023 by Sandeep Kowdley, Krishna Dhanekula, Arun Kunchala, and Suresh Manthena, all veterans at game publisher Electronic Arts and experts in live services, game production and geo adapting games to new markets.

The founders have experience of multi-year live services on prominent game titles and franchises such as Bejeweled, Tetris, Plants vs Zombies, Need for Speed, Real Racing, and The Sims among others, the startup said.

Liquidnitro Games said it uses data, artificial intelligence and tech-drive insights to create "fun and engaging" gaming experiences for players across the world. It plans to use the funds raised to build a gaming studio, invest in AI and technology to boost production pipelines and offer live services capabilities at scale.

"Live services and game production will look significantly different in the coming years shaped by new technologies, AI, and untapped growth markets" Kowdley said in a statement.

"By combining our deep history in the games industry, making significant technology investments, and partnering with global game companies, we believe we have the opportunity to make a huge impact in the coming future" he added.

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The investment comes amid rising maturity among gamers in India in terms of user behaviour and their gaming habits and the country's rising potential as a global video gaming hub.

India is the fastest-growing video 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.

It said the mobile and PC gaming revenue in the country is projected to reach $1.58 billion by 2027, registering a five-year compound annual growth rate of 17.2 percent from an estimated $868 million in 2023. These figures do not include revenue generated by real money games.

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This opportunity is drawing interest from several international gaming giants including South Korea's Krafton, Japan's Sony Interactive Entertainment and Mixi, and US tech giant Microsoft who are all making significant efforts to build and grow their presence in the country.

"India's talent pool offers a strategic advantage, allowing us to pioneer geo-adapted production and live services, unlocking huge value for global publishers" said Sameer Brij Verma of Nexus Venture Partners.

Apart from live services, Liquidnitro Games helps global companies in translating game ideas and IPs into game launches through prototyping, limited market testing, iteration and full production.

The startup said it also partners with AAA studios across the globe to set up specialised game teams to co-produce games and live services. AAA studios are those that build big-budget video games with high-end visuals, challenging gameplay, and cutting-edge technology.