UAE-based Redwood has acquired a majority stake in the game streaming platform Loco as the Indian firm looks to expand focus to international markets, TechCrunch has learned and confirmed.

Redwood, a newly formed investment firm, has signed a $65 million deal with Loco, an investment that also gives full exit to all existing Loco backers.

This valuation drop from Loco’s nearly $150 million peak in 2022 reflects broader struggles among Indian esports streaming firms to generate revenue, a challenge partly attributed to the limited number of popular games in the market.

Loco now sees a much larger opportunity outside of India, and the new deal will fuel its “global expansion efforts,” the startup told TechCrunch.

“This investment is a recognition of the immense work done by our team in the past few years,” Loco founders Anirudh Pandita and Ashwin Suresh told TechCrunch in a joint statement.

“Gaming is an integral part of the cultural zeitgeist globally, and we look forward to building a platform that is at the heart of this global movement. Livestreaming enables authentic connection in a way that other mediums can’t match, and we want to put the fan at the center of this experience.”

The deal follows the sale of Loco’s sister property Pocket Aces, which sold a majority stake in a $40 million deal to Indian music label giant Saregama earlier this year.

Backed by investors, including Catamaran Ventures, Krafton, and Hashed, Loco aims to build a Twitch-like platform and serve markets where either the Amazon-owned service hasn’t expanded to or has weak penetration. On its platform today in the Indian market, gamers stream titles such as Grand Theft Auto V; Call of Duty: Infinite Warfare; Battlegrounds Mobile India; Free Fire; and Valorant.

Streamers on the platform earn revenue through virtual goods purchased by viewers. The startup struck licensing deals with several game publishers, including Krafton, Activision, and Riot, based on what a 2022 pitch deck for investors described as a “first-mover advantage.”