MPL-backed Mayhem Studios bags funding from Lumikai

Underworld Gang Wars will feature iconic Indian locations, distinctive characters, and culturally relevant elements.

Mayhem Studios, the mobile gaming studio backed by skill-gaming unicorn Mobile Premier League (MPL), has secured an undisclosed sum in investment from Lumikai, a gaming and interactive media-focused venture fund, signalling growing investor interest in local gaming studios.

It will use the funds raised to scale operations, accelerate game development, expand its team of developers and improve its technological capabilities, the startup said on July 26.

Mayhem Studios earlier raised about $20 million from investors such as Peak XV Partners (previously Sequoia India), Steadview Capital, Truecaller and Hashed Emergent in 2023.

MPL launched Mayhem Studios in May 2022 to develop AAA mobile games for domestic and global markets. AAA games are typically big-budget titles known for their high production value, detailed storylines and complex gameplay.

Mayhem Studios is building its first title Underworld Gang Wars, a battle royale that is rooted in India. The startup claims the title deeply integrates Indian culture and aesthetics into its gameplay. It will also feature iconic Indian locations, distinctive characters, and culturally relevant elements.

A snapshot of India's video games market

The game features two rival gangs, The Velvets and The Bhokal Toli. Players can choose from a variety of weapons, including traditional Indian weaponry, as they compete to be the last player standing.

“Their (Mayhem Studios) vision for a truly Indian experience and building world-class gaming IPs out of India aligns perfectly with our belief in the potential of India's video gaming industry to captivate global audiences. We're excited to fuel their journey and bring a truly promising project to life," said Salone Sehgal, Founding General Partner, Lumikai in a statement.

First announced in May 2022, Underworld Gang Wars exited closed beta in May and is gearing up for an open beta, the company said. The title has clocked over 7.5 million pre-registrations since opening the pre-registration in May 2022.

"Their (Lumikai's) extensive industry knowledge and expertise will be invaluable as we strive to elevate India's gaming industry on the global stage.

“Underworld Gang Wars is just the beginning of our ambitious vision to create world-class games that resonate with players worldwide. We are committed to nurturing Indian gaming talent and showcasing the country's creative prowess," Mayhem Studios CEO Ojas Vipat said in a statement.

In India, battle royale genre is dominated by Krafton's Battlegrounds Mobile India (BGMI), and Garena's Free Fire with other players including Epic Games-owned Fortnite, Microsoft's Call of Duty and Respawn Entertainment's Apex Legends.

Pune-based rival game development studio SuperGaming is also building a made-in-India battle royale game called Indus. The game is available to select users and is expected to debut on mobile, PC, and consoles later in the year.

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 reach $943 million in 2024, up 13.6 percent from the previous year.

The market is expected to surpass $1 billion in revenue in 2025 and reach $1.4 billion in 2028, growing at a 5-year compound annual growth rate (CAGR) of 11.1 percent, it said. These figures do not include revenues from real-money games or exports.