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New Delhi: Microgravity, a company specializing in location-based entertainment for gamers in the National Capital Region (NCR), is in the process of raising $4 million to expand its presence in key markets such as Delhi, Mumbai, Bengaluru, Chandigarh and Pune.
The company, known for crafting immersive and interactive experiences for players, will add 10 stores within two years, said Rahul Bhattacharya, founder and managing director, Microgravity.
Malabar Capital Advisors is providing advisory support for this fundraising effort, he added. Till 2020, the company had raised $2 million in seed funding.
It is also in the process of setting up gaming centres in airport lounges such as Delhi’s Encalm lounge, and has already deployed its facilities within the office premises of technology companies like Teleperformance.
Currently, Microgravity operates a flagship facility at a mall located in Gurugram, offering a range of virtual reality (VR) and augmented reality (AR) experiences centered around games like Free Roam VR, simulated golf, travel, and classic video gaming. It competes with gaming venues such as Smaaash Entertainment, which is backed by Sachin Tendulkar, in certain segments.
The company was established in 2019 by Bhattacharya, but started operations days before the onset of the pandemic in 2020. Consequently, it temorarily pivoted to organizing esports tournaments. However, with the resurgence of retail formats, it transitioned back to its core operations by September 2021.
“We will expand our retail presence with the funds in key metros. The brand will also be built online and not just offline—to make an esports infrastructure. We have hosted about five esports tournaments with companies like Sony, HP and Intel. We are now at an inflection point and face challenges like high capex, but are trying to work around it by creating both an online and an offline gaming ecosystem,” Bhattacharya said.
Microgravity is also developing a business model tailored for IT-enabled services and BPO firms. This model involves setting up virtual reality gaming arenas within office premises of these corporate entities.
In 2023, the company achieved a gross revenue of approximately ₹4 crore, and turned profitable. It primarily serves individuals aged between 17 and 25 years at its outlets, generating an average revenue of Rs2,600 per person.
“We have noticed that in the retail format, there is a lot of cash burn and marketing spends can skyrocket. However, we’ve managed to address this by reducing our marketing budgets. Our corporate partnerships have proven beneficial, allowing the store to pull its own weight,” he added.
The growing popularity of the entertainment segment was reflected in a recent report by CBRE South Asia Pvt. Ltd, a real estate consulting firm. According to the report, leasing activity in the entertainment segment surged by 179% over the previous year across seven Indian cities in 2023, with the total leasing space reaching 660,000 sqft.
This growth is further highlighted by the entertainment segment’s increased share of overall retail leasing, rising from 5% in 2022 to 9% in 2023, reflecting a growing consumer demand for entertainment experiences within retail spaces, potentially signalling a shift in how people choose to spend their leisure time and money.
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Published: 20 Feb 2024, 05:31 PM IST
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