Kratos Studios, a web3 gaming startup co-founded by Manish Agarwal and Ishank Gupta, has secured Rs 160 crore in its seed funding round.
Accel spearheaded the investment round, joined by Prosus Ventures, Courtside Ventures, Nexus Venture Partners, Nazara Technologies, and several others. Kratos Studios’ seed round is one of the largest for an Indian startup, valuing the company at Rs 1,200 crore.
Through a token swap, company has acquired the gaming venture IndiGG from Yield Guild Games (YGG). With the funds, Kratos Studios plans to build a product platform, support gaming teams, build communities, and create a global brand through IPs and Web3 e-sports competitions.
The co-founder of Kratos Studios, Manish Agarwal, believes that creating operational cash flows quickly is crucial, so the funds can be used for a rainy day and not burned.
they aims to develop distribution channels for international web3 games in developing countries, providing a platform for 500 million gamers in India to become creators of digital goods on the blockchain for global games. The startup currently has 106 games in its portfolio, with 40–44 in alpha-beta and 15 live on its platform.
According to Subrata Mitra, Partner at Accel, Kratos Studios is the best-suited team to unlock the value of blockchain for gamers, and blockchain can fundamentally transform gaming and accelerate growth in emerging markets.
However, Kratos Studios faces challenges such as the availability of good-quality games, statutory policies around virtual digital assets, user friction, and an understanding of unit economics. It may take 12–24 months for new and good games to be released to disrupt the existing Web2 gaming market, which is worth $140 billion.
The founders of Kratos Studios plan to create a Decentralized Autonomous Organization (DAO) that will invest in the most potential web3 games around the space, partnering with Gabby Dizon, co-founder of Yield Guild Games (YGG), and Polygon’s co-founder Sandeep Nailwal to achieve the largest gaming DAO’s designation worldwide.
Kratos Studios’ successful seed funding round is a significant achievement for the startup and shows the potential of web3 gaming in India. The company aims to create a platform for Indian gamers to become creators of digital goods on the blockchain for global games, develop distribution channels for international web3 games in developing countries, and invest in the most potential web3 games around the space. While Kratos Studios may face challenges, the company’s founders are optimistic about the future of web3 gaming, and with the funds raised, they aim to make a mark in the global gaming industry.
