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Grasper Global Pvt. Ltd, the parent of new-age educational toy and games maker Skillmatics, will look to list in India over the next three years, said co-founder and chief executive Dhvanil Sheth in an interview with Mint.
The Peak XV-backed company is also exploring newer categories such as gaming for adults and home and nursery, Sheth added.
“We are getting closer to an IPO (initial public offering) event. The timeline is not defined yet. It would happen over the next three years. We will look at the listing in India,” Sheth said.
According to the co-founder, the company, which is profitable, does not need more capital to grow, and an IPO would be an ideal outcome.
Founded in 2017, Skillmatics sells products in the US, UK, other European markets, and the Middle East. “We are now the single-largest toy seller in the US market with more than 75% of our overall revenues coming from there,” Sheth, also a chartered accountant, said.
He added the India business is currently growing at 155% annually and is likely to account for 30% of the overall revenues over the next five years. India currently contributes around 12-13% of the revenues.
“The India business is growing at a faster clip. We feel the growth momentum has begun to unlock here. We will continue to steadily grow in the US and are also exploring how to deepen our presence in the European markets,” Sheth said.
The ‘Make in India’ initiative, clampdown on imports, rising disposable income, and awareness about educational toys, among other factors, are helping companies such as Skillmatics scale up swiftly in the Indian market.
“We have been seeing steady growth and are likely to clock revenues of around ₹500 crore in calendar year 2024,” he added.
The company saw revenues at ₹290 crore in the calendar year 2023.
The company, which started off as an online seller, has expanded into offline over the last 18-24 months. According to Sheth, it sells products through 20,000 retail outlets in the US.
The company was part of Sequoia Capital India’s Surge programme for early-stage companies. Later, Sequoia Capital India (now Peak XV) invested in it from its venture fund.
Skillmatics last raised a $16 million Series B round, led by Sofina Ventures, in 2022.
Gaming for adults
The company is a full-stack, direct-to-consumer brand for educational products and games for children. It plans to enter newer categories, such as gaming for the 16-35 age group.
“We have observed that adults are increasingly taking to gaming as part of their socializing, and we are betting big on this category. It is the single-largest category globally. We will also look to enter home and nursery with kids’ products, an adjacency we feel will be rewarding,” Sheth added.
Sheth said that in addition to organic growth, the company, which has a lot of cash on its balance sheet, is likely to explore inorganic growth plans. “We are keen to make some acquisitions in the US and India. We can finance them from the capital available on our balance sheet,” he added.
The global toys and games market was estimated at $324.66 billion in 2023 and is expected to grow at a compound annual growth rate of 4.3% from 2024 to 2030, according to a research report by Grand View Research.
“The toys and games industry is expanding due to various factors, such as parents’ increased interest in green toys, the resurgence of conventional toys and video games, awareness about the cognitive benefits of building toys, and the rising popularity of mobile-based gaming,” the report said.
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