Mayhem Studios, a subsidiary firm of Bengaluru-based online gaming unicorn Mobile Premier League (MPL), has raised $20 million in a Series A funding round led by Sequoia Capital.
Other participants include Steadview Capital, Truecaller, and Bring Gordon, the chief product officer of Kleiner Perkins. The newly generated fund will be utilized to create new gaming titles in India and ramp up its capabilities.
Mayhem Studios was launched in 2022 with a focus on developing AAA mobile games. The subsidiary firm competes with other gaming companies like Dream Game Studios, owned by Dream 11’s parent firm Dream Sports, and Nazara Technologies. It came up with its first gaming initiative, Underworld Gang Wars, a few days after its official launch.
The funding came a few days after the central government of India announced regulations for online gaming, legitimizing various forms of gaming except those that allow real-time betting. The move is expected to bring more clarity and legitimacy to the industry, which has seen exponential growth in the past few years.
Mobile Premier League (MPL), the parent of Mayhem Studio, has witnessed a surge in net loss, which increased three times to $149 million in the financial year 2022, up from $48.3 million in FY21. Despite the loss, MPL’s operating revenue also increased by 29 percent to $65.6 million in FY22 from $50.8 million in FY21. In September 2021, the company raised nearly $150 million at a valuation of $2.3 billion.
The online gaming industry has been booming in India, and the pandemic has further accelerated its growth. However, many companies in this space have struggled to make a profit due to intense competition and rising costs. MPL had previously announced plans to lay off 100 employees as a cost-cutting measure.
Mayhem Studios’ funding is expected to help the company create more jobs in the Indian gaming industry and bring more innovative titles to the market. As the Indian government continues to regulate the online gaming industry, more investors are expected to show interest in this space, leading to more opportunities for gaming companies to raise funds and grow.