Rooter, an Indian game streaming platform, has reported substantial financial growth for fiscal year 2025. The company achieved 120% year-over-year revenue growth, reaching $10 million in total revenue. This represents a significant increase from the previous year's $4.5 million revenue in FY24.
Furthermore, the platform has successfully reduced its losses by 63% over the past 12 months. The company currently tracks $24 million in annual recurring revenue (ARR). Additionally, Rooter aims to achieve approximately 4X growth by FY26.
Gaming Commerce Drives Revenue Diversification
The platform's expansion into gaming commerce has become a key growth driver. Previously, Rooter operated primarily as a game streaming platform. However, the company has now diversified its revenue streams beyond traditional brand and publisher monetization channels.
Consequently, the new gaming commerce vertical has emerged as one of the fastest-growing revenue segments. The expansion targets Rooter's substantial user base of over 85 million gamers across India.
Rooter Shop Capitalizes on Microtransaction Trends
The company launched Rooter Shop to serve India's growing microtransaction market. This new platform offers gaming currencies, vouchers, and gift cards to enhance user gaming experiences. Moreover, users are spending an average of approximately ₹2,400 per month on the platform.
The timing aligns with significant market growth projections. According to industry reports, India's in-app purchase market stood at $300 million three years ago. Furthermore, the market is expected to surpass $1 billion this year and reach $4.3 billion by 2029.
Leadership Vision for Continued Growth
Piyush, Founder and CEO of Rooter, outlined the company's strategic evolution. He explained that Rooter has transformed from a pure streaming platform into a comprehensive content-to-commerce ecosystem. Additionally, he emphasized the platform's role in creating growth opportunities for game publishers and developers.
The CEO also shared ambitious targets for the coming year. Specifically, Rooter aims to maintain its leadership in gaming content while accelerating Rooter Shop's growth. The company expects to achieve a $90 million gross merchandise value (GMV) run rate by March 2026.
Strategic Partnerships and Market Position
Rooter currently collaborates with over 100 brands to connect them with gaming audiences. The platform leverages its robust install base of more than 85 million users to create value for partners. Additionally, the company focuses on unlocking new revenue opportunities for publisher partners through community engagement and commerce solutions.
The platform's dual approach combines game streaming with in-game purchase marketplace functionality. This strategy positions Rooter uniquely in the Indian gaming ecosystem. Moreover, registered users spend an average of 20 minutes daily on the platform, indicating strong engagement levels.
Company Background and Investment
Rooter was founded in 2016 by Piyush and Dipesh Agarwal. Since then, the platform has established itself as a category-defining company in India's mobile gaming sector. The company operates at the intersection of gaming and creator-led commerce.
The platform has raised $37 million in primary capital from investors across multiple regions. These investors span India, the United States, Europe, and Southeast Asia. This diverse investor base reflects the platform's global appeal and growth potential.
Path to Profitability
The company is positioning itself for profitability within the current financial year. This goal builds on the significant loss reduction achieved over the past year. Meanwhile, the diversified revenue streams provide multiple pathways for continued growth.
Rooter's comprehensive gaming ecosystem connects various stakeholders including gamers, creators, esports professionals, brands, and gaming publishers. This interconnected approach creates multiple value creation opportunities across the platform.
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