Tag: Matrix Partners

Skill, thrills and compliance: Inside Zupee’s winning online game

MUMBAI: India’s online gaming world is having its “game on” moment and riding the leaderboard is Zupee, a platform that’s swapped chance for skill, raked in 150 million signups, clocked a jaw-dropping 12.5 billion gameplays, and finished financial year 2024 with a neat Rs 146 crore net profit. For an industry notorious for burning money faster than a turbo-charged console, Zupee’s win is as rare as a perfect game.

Pull back the curtain and you’ll meet Govind Mittal, Zupee’s chief spokesperson, who’s put his chips on integrity from day one. “Compliance isn’t an afterthought for us,” he told Indiantelevision.com’s Rohin Ramesh via email. “It’s built into the very foundation of how we operate.”

No sleight of hand here, just rigour honed across boardrooms at ITC, Rivigo, Joyy and more, plus a Chartered Accountant’s sharp eye (Mittal bagged an all-India rank of 16, first attempt, just saying). He has a record of spinning up companies like YY India, rocketing revenues from $1 million to $200 million ARR.

Backed by heavyweight investors like WestCap, Matrix Partners, and Nepean Capital, Zupee boasts a $600 million valuation and is not just surviving but thriving with profitability in its corner. With momentum on its side, Zupee is setting its sights on joining the top tier of India’s online gaming platforms, giving its rivals a serious run for their money.

But don’t mistake the platform for a digital wild west. Instead, think of Swiss bank user trust being guarded more jealous than Fabergé eggs (A jewelled egg first created by the jewellery firm ‘House of Fabergé’). Every Zupee game is skill-based, luck is for lotteries.

RNG (random number generators) are reviewed by global auditors; the firm boasts a third-party stamp from Arthur D. Little, and bots are banished. “We work closely with payment gateways to keep track of UPI IDs which have been used for fraud in the past and block payments through such IDs to ensure financial integrity of the platform,” says Mittal.

Mittal has turned responsible gaming from a regulatory box-tick into the heart and soul of Zupee’s digital playground. KYC, age-gating, daily deposit limits, self-exclusion tools and trained support are stitched into the code. Session limits and refunds are all crystal clear. “Everything from our terms and conditions to our advertising practices is designed to be transparent and user-first. Fairness isn’t just a promise – it’s something we’ve institutionalised,” he comments.

When risky behaviour emerges (say, a player’s wallet suddenly goes on a sugar rush), the system nudges, prompts, and if necessary, hits pause. “From day one we’ve built our platform with safeguards like spend limits, session reminders and self-exclusion tools that help users stay in control of their gameplay. Zupee offers users the ability to self-regulate through deposit limits and game locks and we actively monitor gameplay patterns to flag and assist users showing signs of excessive behavior,” he boasts.

In an industry where “collaboration” is usually code for “let’s not tell the regulator”, Zupee takes the opposite tack. The company is a card-carrying member of the All India Gaming Federation, actively sharing its rulebook, lobbying for a central regulatory framework, and even blowing the whistle on shady offshore operators trying to sneak in through the back door.

“We regularly engage with policy stakeholders to provide ground-level insights on gameplay behavior, tech innovation and user safety, helping ensure that emerging regulations are both practical and forward-looking,” he grins.

Mittal bristles at the idea that revenue growth and safeguarding users are at odds. Says he, “Zupee offers users the ability to self-regulate through deposit limits and game locks and we actively monitor gameplay patterns to flag and assist users showing signs of excessive behavior. In-app nudges, direct outreach from trained counselors and temporary restrictions are applied where necessary. Our systems are designed to ensure that gaming remains a form of entertainment.”

India’s gaming laws are a spaghetti of state-level tweaks. For industry players, it’s like playing snakes and ladders, mostly snakes. He concludes by saying, “A unified regulation is absolutely necessary for the orderly growth of this industry. Gaming has been a disruptive sector in more than one way and has the potential to engender technological innovation far beyond our imagination.”

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July 21, 2025
After raising funds, LimeRoad bets high on “intelligent” marketing

MUMBAI: India’s online retail market has grown multi-fold in the past couple of years, courtesy the growing use of the internet and smart phones. According to a Crisil report, e-retailers have earned revenues close to Rs 139 billion ($2.24 billion) in the financial year ended 31 March, 2013.

However, to succeed or for that matter survive in an exceedingly cut-throat online environment, these companies have to time and again generate money through equity funding or merge with other online players.

One such player is LimeRoad, an online social discovery platform for women, which has raised a second round of funding of $15 million, led by Tiger Global, with participation from existing investors Lightspeed Venture Partners and Matrix Partners India. The company had in 2012 raised $5 million through its first round of funding, with participation from Lightspeed Venture Partners and Matrix Partners India.

LimeRoad’s advisory team helped it build a strong proposition to get the right kind of investment partners for its business. The team comprises Ahti Henla who is the founding architect of Skype and Michael Swaiij, who is credited with the launch of e-bay and AOL in Europe.

So what is on the agenda now? The website will be investing a large part of the funds in technology to further build the user interface on the platform and on mobile. “We have a great team on-board and we are looking to build it further with the help of these funds. So far, we have kept marketing flat, but we are now looking to increase spends on some intelligent marketing,” says co-founder & CEO Suchi Mukherjee.

The blueprint of the marketing is a work in progress but the focus will largely be on social networking websites. “Currently, our primary focus will be on building our mobile app further. We intend to make the LimeRoad experience for women nothing short of addictive. Our plan is to win over women mobile users across the country with our mobile app that is light, super-fast and extremely easy to use,” adds Mukherjee.

What made Lightspeed Venture Partners invest in the e-commerce site for a second time? Says Lightspeed Advisory Services India MD Bejul Somaia, “We continue to invest in what we believe is a truly exceptional team that consistently refuses to take short-cuts and instead, focuses on finding scaleable, long-term solutions to difficult problems. The LimeRoad team has already disproved many accepted notions in the world of Indian online commerce. For example that it is not possible to grow without offering heavy discounts or that Indian users aren’t savvy enough to embrace deep social activities like scrapbooking, curating collections or sharing.”

However, there are experts who feel that it is not easy to raise money. Seedfunds’s founding partner Mahesh Murthy says, “It is getting increasingly difficult for e-retailers to raise money these days and the only ones who seem to manage it these days are those doing second rounds. This is not because of a paucity of new retailers – but because of the belief – not necessarily true – that it takes a lot of money to build a successful retail brand. Conversely, the raise of a big round is no guarantee that your brand will survive – just ask those who have been purged or merged into nothingness.”

With an already overcrowded online retail market, how does LimeRoad plan to break away from the clutter?

LimeRoad.com believes that unlike the rest of the players which are still using conventional methods of ecommerce, LimeRoad uses Web 2.0 elements. Through these, it has engaged with consumers with its proprietary Scrapbook feature. “We measure our success basis how well we engage our users and today, we have a community of 5000 + Scrapbookers who have curated more than 75,000 looks and our most avid Scrapbookers create between 5-7 looks every week,” says Mukherjee.

About the TG, Mukherjee feels it is no longer about appeal but more about ease and convenience. “Since youngsters are more socially active, they like to discover new websites, new products and share with their friends. So, they are the ideal shoppers for e-commerce sites. However, at LimeRoad, we see an equal traction from shoppers aged 18-25 years and in the 30+ category, as our large collection of unique and exclusive products appeal to a more discerning, mature audience as well,” he says.

The site isn’t scared of competition either and is aware that with too much competition, many try to woo and acquire customers through discounts. “Our approach is different, we believe in acquiring customers and creating brand loyalists through engagement. If you simply put up products on discounts, the customer loyalty is towards discounts,” states Mukherjee.

The lifestyle online retailer promises its customers products from the deepest corners of the country, and to fulfill this, promise, it has 60 per cent vendors who retail exclusively on the platform. To give you an example, DAMA, which is Dastkar Andhra Marketing Association, closely engages with the weavers through handloom co-operatives. The fabrics and garments are hand woven and flawlessly handcrafted from natural fibres and dyes. They retail exclusively with LimeRoad.com and are not available anywhere else online.

“Also, our vendors update stocks every 15 days, which fulfils our promise of enabling discovery and freshness,” says Mukherjee.

On the e-retailer business model, Murthy opines, “LimeRoad follows the Pinterest-type model, with a mobile app front end. While UI will go some way -and is easy to replicate, it is your mastery over margins, unique designs and supply chain that will help you win in the long run. Executing on those fronts will be LimeRoad’s key challenge.”

The e-commerce space in India has grown exponentially over the last couple of years and has witnessed a growth of 88 per cent in 2013, as compared to 2012 alone, as per various reports.

Talking about the purple patch the e-commerce sector is enjoying these days, Mukherjee says, “e-commerce is here to stay and grow. Increasing internet penetration, fast adoption of 3G, and smart phones in tier II & III cities, and more retailers entering the e-commerce space will ensure that the e-commerce industry will remain a sunshine sector.”

The year 2013 was a good year for the site and this year, its goal is to be the largest platform for social discovery of lifestyle products in south East Asia. LimeRoad aims to cater to everything that interests women when they are browsing online.

May 21, 2014
Matrix Partners launches $150 million consumer services risk capital fund

MUMBAI: Matrix Partners India, co-founded by Avnish Bajaj and Rishi Navani in partnership with Matrix Partners US, today announced the closing of its first fund.

The $150 million, multi-sector, multi-stage fund will focus on early to growth stage businesses in the internet, mobile, financial services, media and entertainment, healthcare and travel and leisure sectors.

The first fund of its kind in India, it aims to partner with entrepreneurs to build market leading companies in the consumer services domain. The fund was heavily oversubscribed and current investors in the fund include leading US university endowments and family foundations.

“Matrix Partners is the first leading venture capital firm to establish a fund in India. The Indian economy is in a very exciting phase and Matrix Partners’ is looking forward to participating in the region’s growth story,” said Matrix Partners US founding partner Paul Ferri.

“As co-founders of Matrix Partners India, Avnish and Rishi bring incomparable experience in working with India-based companies in the consumer services sector. We have the ideal team in place to help Matrix Partners continue its strong legacy of building the best-performing companies and long-term relationships with talented entrepreneurs,” said Matrix Partners US managing partner Timothy A. Barrows.

Domestic entrepreneurs would benefit from the rich experience of the Indian founders and the strong company-building expertise of Matrix Partners US. Bajaj’s entrepreneurial experience (co-founder, chairman and former CEO of India’s largest online marketplace Baazee.com, acquired by eBay) and Navani’s venture and domain experience (former managing director at WestBridge Capital Partners) provides the ideal background to help entrepreneurs realise their ambitions. Matrix Partners US also brings to bear its experience as the top performing venture firm over the past two decades with assets under management of more than $3 billion.

Matrix Partners India founding managing director Avnish Bajaj said, “Matrix Partners India is focused on presenting a unique proposition to the emerging businesses in the consumer services sector. We believe that the founding team has an unparalleled competency to recognize and support potential market leading companies in this sector. By leveraging on Matrix Partners’ proven approach to investing, we are determined to emerge as the trusted partner of choice for Indian entrepreneurs.”

“The domestic consumer services industry is the key driver of India’s Gross Domestic Product growth. The industry is set to witness an era of innovative business models and significant value creation. We are delighted to partner with Matrix Partners, and appreciate the overwhelming support from our marquee investor base,” added Matrix Partners India founding managing director Rishi Navani.

August 1, 2006