Third time’s the charm for this startup looking to ride India’s gaming frenzy

In its sharpest pivot so far, the company has doubled down on gaming commerce, helping it clock $10 million ( ₹82 crore) in revenue in 2024-25, a 120% year-on-year jump. Almost 70% of that revenue came from users, not advertisers. 

At the heart of this transformation is Rooter Shop, an in-app marketplace that allows gamers to buy virtual currencies, gift cards, and gaming vouchers. In just six months since its launch, Rooter Shop has emerged as the fastest-growing revenue channel for the platform. 

“The launch of Rooter Shop marks a defining moment for us. We’ve moved from just being a streaming platform to becoming a content-to-commerce company,” said Piyush Kumar, chief executive and co-founder.

The platform has scaled multiple user monetisation streams in addition to its existing brand and publisher deals. But the pivot came with tough calls. The company pulled back on aggressive growth, cut costs, and reoriented its strategy towards sustainable monetisation. 

Since its previous fundraising round nearly two years ago, Rooter says it has reduced its cash burn by over 80%. Losses dropped 63% in FY25. “We decided not to chase top-line growth blindly. We focused on stabilising monetisation before expanding again,” Kumar said.

Rooter has so far raised $37 million in primary capital from investors across India, the US, Europe, and Southeast Asia. According to the company, its annualised revenue run rate—a 12-month projection based on current revenues—is at $24 million (about ₹205 crore).

The company is targeting a gross merchandise value (GMV, or total sales without factoring in discounts and other expenses) run rate of $90 million by March 2026, up from $24 million in March this year. 

Rooter has more than 85 million registered users, with paying users spending around ₹2,400 per month on average. “Gaming in India is becoming a leisure spend category. Our users, often young adults, have meaningful disposable income and are willing to invest in digital goods,” Kumar said.

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Riding India’s gaming wave

India’s gaming industry is experiencing rapid growth, driven by a young, tech-savvy population, affordable smartphones, and widespread internet access. According to a report by UnlistedIntel, the country boasts over 500 million active gamers, with about 138 million willing to pay for premium services. 

Key growth drivers for India’s gaming market include increased smartphone usage, low data costs, and the ease of digital payments via UPI. However, challenges such as regulatory ambiguities, content localization, and taxation concerns persist. 

Despite these hurdles, the sector presents significant opportunities for investors, developers, and consumers alike, as the ecosystem matures and focuses on creating innovative, immersive gaming experiences tailored to India’s diverse audience.

According to a recent report by Lumikai, a gaming-focused venture capital fund, India’s in-app purchase market, which stood at $300 million three years ago, is expected to surpass $1 billion this year and hit $4.3 billion by 2029. 

Kumar believes Rooter is well-placed to ride that wave, noting that 87% of all Rooter Shop transactions are now organic.

What sets Rooter apart, Kumar said, is its in-house tech stack, cost discipline, and early move to monetise. “If we are the only serious player in the category, we need to show maturity in how we operate and scale.”

According to Kumar, Rooter’s core moat is a combination of its proprietary technology, low customer acquisition costs, and tight integration of streaming and commerce. “We are acquiring users cost-effectively and converting a healthy percentage into paying customers. That makes Rooter a powerful commerce engine, not just a content destination,” he said.

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Venturing beyond gaming

Rooter’s journey has been marked by repeated reinvention. It started with sports fan engagement, shifted to live commentary, and then pivoted to game streaming in a crowded space. 

The platform also works with over 100 brands and major gaming publishers in India. It helps them distribute digital goods, run esports tournaments, and even localise go-to-market strategies. “Every successful game launch benefits us. Rooter Shop acts as a central distribution hub for gaming currencies and SKUs (stock keeping units, or product lines) that aren’t available elsewhere,” Kumar said.

According to the company, its users spend an average of 20 minutes per day on the platform. 

But it does face stiff competition from global game streaming platforms Twitch and YouTube Gaming. Kumar appears unfazed. “Twitch has never targeted mobile-first markets like India. YouTube is too broad. Rooter is purpose-built for Indian gamers,” he said.

Globally, Twitch has more than 240 million unique visitors every month and about 35 million daily active users. However, in India, its estimated user base is about 910,000. YouTube doesn’t provide gaming numbers separately. 

Rooter is also exploring new business segments such as payments and user engagement tools. “Every year, we want to unlock a new monetisation or engagement layer. Commerce was the start. Payments or deeper social layers may be next,” Kumar said.

“We’ve quietly built one of the most scalable gaming ecosystems in the country. Now we’re ready to talk again. Gaming will be a $5-10 billion category in India soon. We want Rooter to be here for the next decade,” he said.

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