Rooter to invest Rs 77- 96 crore in marketing in FY23; aims to clock revenue of Rs 60 crore – The Financial Express

Game streaming platform Rooter aims to clock gross revenue of Rs 60 crore by the end of FY23, Piyush Kumar, founder and CEO, Rooter, told BrandWagon Online, however he declined to comment on the loss for the year. The platform which claims to have over 11.46 million monthly active users (MAUs) currently, is expecting to see a 118%  rise in its userbase this fiscal to 25 million MAU. “At the beginning of last year (January 2021) we used to have 50,000 content creators and currently we have close to 10 lakh exclusive content creators on our platform. A large credit of this rise goes to the fact that the gaming market has matured,” Kumar stated. The company plans to invest Rs 77- 96 crore in marketing this fiscal. 

It is to be noted that the company had raised $25 million led by Lightbox, March Gaming and Duane Park Ventures. The company’s net revenue stood at Rs 1.7 crore, while it posted a net loss of Rs 11 crore in FY21, according to the regulatory filing accessed by the business intelligence platform Tofler. “For the next 18-24 months we are investing in the ecosystem. We are going to spend a lot of money on the supply side of business– partnering with Esports teams, buying rights for such tournaments and also getting a lot of users to increase our market share,” he said. 

The company claims to have seen growth in the past 12-18 months in terms of users as well as revenue. For Kumar, the platform registered 11x growth in userbase to 11.46 million in 2022 from one million MAU in 2020. Similarly, the daily active users (DAU) have increased from 150,000 in 2020 to a million users now. As for revenue, the company claims that it will clock a 50% rise in May 2022 to Rs 2.25 crore as opposed to April 2022. 

Currently, the company has five revenue models – advertising, performance marketing, influencer marketing, rooter shop, and sponsorship and events. Of this, performance marketing accounts for a major portion of the revenue followed by advertising and influencer marketing, the company claims. Further, Kumar stated that brands such as BUJU’s, Unacademy, Dream11 and others use Rooter’s platform for performance marketing and influencer marketing. “Brands are using our streamers to talk about their product as our userbase falls between the 12-24 age group –which happens to be their target group. Currently, about 20 brands work with 1,000 Rooter streamers. As for performance marketing, we give about six-seven lakh unique downloads on an average to our clients,” he explained. The company charges Rs 22 for a download on performance marketing while their commission fee for influencer marketing stands at 80%. 

As for advertising, the platform claims to run native ads currently but plans to run video ads in the beginning of the stream as well in-between. As per, Rooter most of the brands which advertises on its platform are digital first brands such as cryptocurrency, gaming brands, ecommerce brands, audio and tech products. 

Inherently a game streaming and gaming content creation company, Rooter is currently a free-to-watch platform where users watch content via gamification and stand to earn Rooter points when they watch or create a content for the platform. As per the company, these coins can be redeemed with any game currency for instance diamonds in Free Fire or via paytm cash. Going forward, the company plans to roll-out subscription plans for creators sometime this year.

The company recently partnered with Skye Sports– one of the biggest tournament holder companies in South-East Asia. With this partnership, Rooter now has exclusive media rights for 16 tournaments and IPs. “We have bought media rights for one year consisting of 8,200 hours of live Esports content. We have also partnered with seven top Esports teams in India wherein all their players are now creating exclusive content for Rooter. Moreover, we have tied-up with 30 upcoming Esports teams, thereby closing the Esports funnel of upcoming and top tier teams. The goal is to work with all the teams representing India in the Commonwealth Games,” Kumar added. 

Read Also: Penta Esports to launch three more leagues this year; aims to break-even by FY23

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