Kratos Gamer Network (KGeN), a leading Web3 gaming startup, has announced a $10 million funding round. The startup is backed by Accel and Prosus Ventures. This funding has propelled its valuation to $500 million, more than threefold the previous valuation. Aptos Labs, a prominent developer of Web3 solutions for live service games, led the latest round. Additional participation came from blockchain startup Polygon and esports network Game7.
KGeN was founded in 2022 by Manish Agarwal. The company has rapidly gained traction. It has achieved an annualized revenue run rate (ARR) of $12 million. KGeN has onboarded 10.8 million gamers to the Kratos Gamer Network. Besides, according to Agarwal, the company will reach $25 million in ARR by next year.
Strategic Expansion: Markets like the US, South Korea, and China are saturated
KGeN’s strategic focus is on building a decentralized platform, Kratos Gamer Network. This platform serves as a bridge between global game publishers and gamers. Agarwal, the former CEO of listed gaming firm Nazara Technologies, has a vision for KGeN. He envisions it as a “decentralized Facebook” for the gaming industry. The company began its operations in India.
“Markets like the US, South Korea, and China are saturated,” Agarwal explained. “But the Middle East offers a unique opportunity with high-value gamers.” Currently, 60% of KGeN’s users are from India. 10% each are from Brazil and Bangladesh. The remaining users are from other markets, including Nigeria. The Middle East is a key market for high-value gamers. This makes it a strategic priority for KGeN.
Kratos Gamer Network: Funding for Growth and Innovation
The proceeds from this funding round will be used to scale KGeN’s platform and introduce new features. Similarly, they will also be directed towards expanding its presence in emerging markets. Over the past two years, KGeN has collaborated with over 180 gaming companies. It has had 20-25 active campaigns on the platform each month. Besides, this scale has resulted in a 30-60% better return on investment (ROI) for gaming companies than traditional platforms like Meta and Google.
Kratos Gamer Network Revenue Streams
KGeN operates as a decentralized platform. It earns revenue by facilitating user acquisition and gamer spending for the gaming companies it partners with. Agarwal emphasized the importance of targeting markets with high average revenue per user (ARPU) and high volumes. India and Bangladesh are high-volume markets. Moreover, Brazil is a high-volume and moderate-value market, and the Middle East can be a low-volume but high-value market.
Industry Impact and Future Vision
Mo Shaikh, CEO of Aptos Labs, highlighted KGeN’s transformative impact on the gaming industry. Venture capital giant Andreessen Horowitz backs Aptos Labs. “KGeN is driving a major shift in how gamers own and control their data,” Shaikh said. “In an industry where players often lack control, KGeN is giving them true ownership of their digital identities.”
Meanwhile, as KGeN continues to grow and expand, it is positioning itself as a leader in the Web3 gaming space. The company offers innovative solutions, creating new opportunities for game publishers and gamers.
Wrapping Up
Web3 gaming represents a paradigm shift in the gaming industry. By leveraging blockchain technology, Web3 games enable true ownership of in-game assets, allowing players to buy, sell, and trade items with real-world value. This creates new economic models and enhances player engagement and loyalty.
Meanwhile, for developers, Web3 provides a more democratic and open ecosystem. In such ecosystems, they can build and monetize games without the constraints of traditional centralized platforms. This democratization fosters innovation and creativity, potentially leading to the emergence of new genres and gameplay mechanics.
As the technology matures and adoption grows, Web3 gaming is poised to become a significant force in the entertainment industry. It will reshape how we interact with digital worlds and create new avenues for value creation and community building.
