UAE-based Redwood has taken a majority stake in the game streaming platform Loco as part of its strategy to expand into international markets, according to information obtained and confirmed by TechCrunch. Redwood, a recently established investment firm, finalized a $65 million agreement with Loco, which provides a complete exit for all the startup’s previous investors.

This deal reflects a significant drop in Loco’s valuation, which peaked at nearly $150 million in 2022, signaling the broader revenue challenges faced by Indian esports streaming platforms. These challenges have been partly due to the limited number of popular game titles available in the region.

However, Loco now identifies a more extensive opportunity outside of India, and this fresh investment will propel the company’s “global expansion efforts,” as shared with TechCrunch. Loco’s founders, Anirudh Pandita and Ashwin Suresh, stated, “This investment acknowledges the tremendous work our team has put in over the past few years. Gaming is a crucial aspect of global culture, and we are excited to build a platform that stands at the center of this worldwide movement. Live streaming offers a level of authentic connection that other mediums can’t replicate, and we aim to place the fan at the heart of this experience.”

The acquisition follows the sale of Loco’s sister company, Pocket Aces, which was acquired in a $40 million deal by Indian music label giant Saregama earlier this year.

Loco, supported by prominent investors such as Catamaran Ventures, Krafton, and Hashed, aims to create a Twitch-like platform and target markets where Amazon-owned Twitch either hasn’t expanded or holds a relatively weak presence. Currently, Loco’s Indian platform features live streams of popular games, including Grand Theft Auto V, Call of Duty: Infinite Warfare, Battlegrounds Mobile India, Free Fire, and Valorant.

The streamers on Loco generate revenue through virtual goods that viewers purchase while watching the live streams. The platform has also established licensing partnerships with several major game publishers like Krafton, Activision, and Riot, leveraging what a 2022 investor pitch deck described as a “first-mover advantage” in the market.