Mumbai-based venture capital firm Lumikai has announced the launch of its second fund, dedicated to supporting entrepreneurs in India’s booming gaming and interactive media sector. With a target corpus of $50 million, Lumikai aims to provide funding across the spectrum, from pre-seed to Series A investments.
In addition to attracting global investors, Lumikai is actively seeking domestic rupee capital by establishing a $10 million alternative investment fund exclusively for Indian limited partners. By combining both international and local investments, Lumikai intends to drive growth and innovation within India’s gaming industry.
The fund has already received endorsements from esteemed investors such as South Korea’s Krafton and Smilegate, Japan’s Mixi and Colopl, and Finland-based decacorn Supercell. Notably, Indian gaming startup Nazara and the family offices of Jeejeebhoys, KCT Group, DSP Kothari, and Sattva Group have also joined as investors, signaling their confidence in Lumikai’s mission.
Prominent high net-worth individuals (HNIs) have also shown their support for Lumikai. Industry veterans like Ben Feder, former CEO of Take-Two Interactive; Jon Vlassopulos, CEO of Napster; Pankaj Gupta, founder of Gulf Islamic Investments; and Akshat Rathee, founder of Nodwin Gaming, have participated in the fundraising efforts, further validating Lumikai’s vision.
Salone Sehgal, Founding General Partner of Lumikai, expressed optimism about the fund’s launch, stating, “Over the course of the last three years, we have witnessed over 1,400 deals and seen the industry attract investor interest, deepen founder quality, and achieve liquidity events. We continue to remain bullish on the long-term potential of the India interactive market, and this is our opportunity to build on the foundation we have laid.”
Lumikai’s second fund aims to identify and invest in 18-20 leading ventures across five key areas: gaming content and digital media, companies leveraging applied game mechanics and interactive touchpoints, user-generated content (UGC) platforms and the creator economy, tools, technology, and infrastructure, as well as frontier bets such as generative AI, mixed reality, virtual identities, and edge computing. Salone Sehgal, Founding General Partner of Lumikai, emphasized the fund’s commitment to these categories.
Fund II has already completed its first close and boasts a robust pipeline of planned investments. Among them, three deals are currently at the term sheet stage, involving industry veterans leading companies focused on content, platforms, and cutting-edge areas.
Reflecting on Lumikai’s role, Justin Shriram Keeling, Founding General Partner at Lumikai, commented, “Lumikai was created ground-up to be a focal point for the next generation of superstar gaming and interactive media founders. These sunrise sectors have seen tremendous tailwinds since we launched the fund, and we are privileged to have a front-row seat in this revolution.”
Lumikai initially introduced Fund I, valued at $40 million, in 2020. Since then, the fund has provided support to various gaming and interactive media startups, including Elo Elo, Studio Sirah, Loco, Bombay Play, Buystars, House of X, Gigafun Studios, and others. With the introduction of Fund II, Lumikai aims to continue exerting a positive influence on India’s gaming and interactive media landscape.
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