Kratos Studios Founded by Former Nazara CEO, Raises INR 160 Cr to Build Distribution Rails for Web3 Games

• ByStartupStory     |    February 23, 2023

Manish Agarwal, former CEO of Nazara Technology, and Ishank Gupta, an early-stage investor, have launched Kratos Studios, a new Web3 gaming venture. In a recent seed funding round, the company raised INR 160 Cr at a valuation of INR 1,200 Cr, with Accel, an early and growth-stage venture capital firm, leading the investment. Other major investors in the round included Prosus Ventures, Courtside Ventures, Nexus Venture Partners, and Nazara. 

The successful funding round underscores the potential for Kratos Studios to make a significant impact in the highly competitive gaming industry, making it a key player to watch for investors and industry analysts.

Kratos Studios, a new Web3 gaming venture launched by former Nazara Technology CEO Manish Agarwal and early-stage investor Ishank Gupta, has raised INR 160 Cr in a seed funding round led by Accel. The company aims to utilize the funding to build distribution channels in emerging markets for global Web3 games. Kratos Studios plans to establish a Web3 gaming Decentralised Autonomous Organisation (DAO) and has already acquired web3 gaming DAO IndiGG through a token swap. IndiGG is a blockchain-based gaming community that is working to develop distribution channels in emerging markets for global Web3 games, which aligns with Kratos Studios’ mission. 

The company is set to launch its token within the next 12 months, and existing INDI token holders will be offered new tokens during the Token Generation Event. Until then, INDI tokens will continue to be traded on existing exchanges. The successful acquisition and upcoming token launch showcase Kratos Studios’ potential to make a significant impact in the Web3 gaming industry, making it an appealing investment opportunity for investors and traders.

Kratos Studios aimed to partner with IndiGG, as it had the support of Polygon’s co-founder Sandeep Nailwal and Yield Guild Games’ co-founder Gabby Dizon, said Manish Agarwal, Kratos Studios’ co-founder. By acquiring IndiGG, Kratos Studios will now own all of its intellectual property. Agarwal added that Kratos Studios’ founders will maintain a close relationship with Nailwal and Dizon, who incubated IndiGG.

Gupta stated that ‘the IndiGG stack will collaborate with current gaming micro-communities in South Asia, both online and offline, as sub-DAOs in the IndiGG ecosystem’. This strategy will enable explosive community growth for global Web3 games, he added. Agarwal added that they are providing over 500 million South Asian gamers with the chance to use their skills and time to become creators of digital goods on the blockchain for global games. This will transform South Asia into a digital goods factory for the gaming world, he further added.

Last year, Manish Agarwal stepped down as CEO of Nazara Technologies, with the company hinting at his plans to embark on an entrepreneurial journey. In recent times, several Web3 startups like Samudai, Zbyte, and EPNS have raised funding from prominent investors.

 According to a joint report by NASSCOM and venture capital fund Hashed Emergent, India is home to over 450 Web3 startups that raised about INR 10,700 Cr ($1.3 Bn) between 2020 and 2022. In November 2022, a new lobby called the Bharat Web3 Association was formed by Indian Web3 startups, with members like WazirX, Hike, CoinSwitch Kuber, CoinDCX, Coinbase, and Polygon.

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