Zupee raises Rs 70 Cr from existing investors in a fresh round

Zupee, the online gaming startup, has bagged Rs 70.09 crore from its existing investors Matrix Partners and West Cap in a fresh round. The existing investors pour in the investment for the second time in the firm that runs live quiz tournaments on its app where users compete for cash prizes.

The parent company of the app has assigned 2,689 series A1 preference shares at an issue price of Rs.260,666 per share to raise Rs 70.09 crore .

West Cap has received 2,264 shares for Rs 59.02 crore, Matrix Partners has acquired 425 fresh shares by investing Rs 11.07 crore. Promoters have diluted their shareholding from 33.84% to 29.7% in this round.

After this infusion, West Cap has raised its holding to 16.9%, while Matrix now holds 11.54% stake in the Gurugram-based company.

Earlier in April 2020, Zupee raised an $8 million Series A round led by Matrix Partners. Falcon Edge Capital, WestCap Group and Orios Venture Partners also participated in Series A financing. The company was incubated by Smile Group that invested $1 million seed capital in 2019.

As per the Zupee website, the app runs over 1,000 quizzes across genres like Bollywood, Math, sports, spelling, among others. It also claims that the company has paid over Rs 100 crore worth cash prizes to more than 500K winners.

Since the app offers cash prizes, Zupee’s app is distributed through the Android application package or APK. Google doesn’t allow the listing of apps that involve cash prizes on the Play Store.