Two VCs invest in Kreeda

IDG Ventures and SoftBank China & India Holdings have invested in Kreeda Games, a company focused on massively multiplayer online games (MMOGs). The investment is learnt to be less than $10 million. The VCs bring international experience to Kreeda — IDG’s portfolio includes VinaGames, a gaming company in Vietnam, while SoftBank has invested in the South Korea-based Gravity.

Planned revenue streams are monthly membership subscriptions, hourly charges, in-game advertising and in-game item sales. The revenue model would depend on each game. Their first game, Dance Mela, is free to sign up and play.

The VCs and Kreeda’s CEO quote the success stories from China and Vietnam to underline their belief in the Indian market. The Chinese market for MMOGs grew from $1 million in the first year to $80 million by the end of the second year. Within six years, he says, the Chinese market touched $1 billion. IDG has experience in Vietnam where a million subscribers were introduced to MMOGs within a year.

(Source: ET)