Existing investors Orios Venture Partners and Matrix Partners India also participated in the round.
Following the funding round, Zupee’s valuation has jump 5x to $500 million from its previous round earlier in the year when it
raised $100 million led by US-based growth equity firm WestCap Group and existing investor Matrix Partners India.
Zupee has so far raised $49 million, including the current round.
Founded in 2018 by Dilsher Singh Malhi and Siddhant Saurabh, Zupee is a mobile-based app for both Apple’s mobile operating system iOS and Google’s Android, allowing users to play quiz tournaments across a range of topics. It is expected to add web-based applications soon along with 7-8 more games.
The fresh funds will be utilised to expand its portfolio and deepen user reach. Part of the funds will also be used for strategic acquisitions.
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“Our user and revenue growth has been phenomenal, with very strong unit economics and margins,” Malhi told ET. “Our revenue has jumped 15x in the last 12 months and our user base has grown over 10x in the last 12 months, so I think that itself describes the steep jump in valuation.”
The company has 35 million registered users, primarily from tier 2 and tier 3 cities in the 18-35 age group.
The real money gaming platform has a paid user base of 15%, Malhi told ET.
The company collects a 10% fee for paid games and users can spend between one rupee and Rs 10,000 on a game.
The skill-based gaming segment has attracted significant financing in India over the past year, despite an uncertain regulatory landscape.
In the area of skill-based gaming, Dream11’s parent Dream Sports completed a $400 million secondary investment round led by TCV, D1 Capital Partners and Falcon Edge in March.
“In terms of monetization, card games and fantasy have been well very well proven and are doing really well, but in terms of actual social gaming, we haven’t seen many platforms or even for games that have been able to crack really good monetization,” he said.
In the space of social gaming, GetMega raised $9 million from Accel India, Nexus Ventures Partners, and others earlier this year.
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