Indian gaming technology startup ARC has secured Rs 10.5 crore in a pre-seed funding round to accelerate the development and commercialization of its flagship portable gaming system, the ARC X1. The investment round was led by Chimera VC and MIXI Global Investments, with participation from Dhruv Vohra, Director at Meta APAC, in his personal capacity. This capital injection marks a significant milestone for the company as it prepares to enter the competitive handheld gaming market.
The startup intends to deploy the funds toward critical hardware engineering, product validation, and the establishment of manufacturing and supply-chain operations. By focusing on these foundational elements, ARC aims to bridge the gap between mobile-first gaming habits and the demand for dedicated, high-performance portable hardware in the Indian market. The company has already generated significant interest, reporting that over 50,000 potential users have joined the waitlist for the device ahead of its official commercial launch.
Engineering the ARC X1 Hardware
At the heart of the company's strategy is the ARC X1, a portable gaming system built on ARM architecture. The device leverages Qualcomm technology to deliver performance tailored for a mobile-first audience. By utilizing this architecture, the startup aims to provide a versatile gaming experience that bridges the divide between different platforms. The hardware development process has been bolstered by a collaboration with Qualcomm Technologies, which has provided technical support throughout the design phase.
To ensure the device meets the needs of its target demographic, ARC has implemented early testing and feedback programs. These initiatives involve active participation from the gaming community, allowing the company to refine both hardware and software before the product reaches mass production. This iterative approach is intended to address the specific requirements of Indian gamers who have historically had limited access to dedicated portable gaming consoles.
Developing the Proprietary OWL OS
Beyond the physical hardware, a core component of the company's platform is OWL OS, its proprietary gaming operating system. The startup plans to invest a portion of the new funding into the continued development of this software stack. The operating system is designed to facilitate a seamless gaming experience by supporting a wide range of titles, including native Android games and PC games, through the company's specialized software integration.
By building its own operating system, ARC aims to create a unified ecosystem that differentiates its hardware from generic mobile devices. The software platform is intended to be the foundation for the company's broader ambitions in the gaming space, encompassing cloud gaming and content delivery. This dual focus on hardware and software is central to the founders' vision of making high-quality gaming experiences more accessible to a broader audience.
Strategic Vision and Market Positioning
Founded by Jobin Joseph and Kaustubh K. Jadhav, the startup is positioning itself to capitalize on the relatively low penetration of dedicated gaming hardware in India. The founders believe that access to high-quality gaming should not be a barrier for enthusiasts. As Kaustubh K. Jadhav noted, "ARC was founded on a simple belief access should not determine how deeply someone gets to experience gaming." This philosophy drives the company's go-to-market strategy, which emphasizes affordability and accessibility.
Investors have expressed confidence in this approach, viewing the startup as a potential infrastructure player for the next generation of gaming. Krish Anurag of Chimera VC stated that the firm looks for companies that can "become infrastructure for the next chapter of a category," noting that ARC aligned perfectly with this investment thesis. Similarly, Tomoharu Urabe of MIXI Global Investments highlighted the potential for the ARC X1 to make handheld gaming more accessible to India's large and passionate gaming community.
Scaling for the Future
The funding will also support broader organizational growth, including team expansion and the development of strategic partnerships across the gaming, cloud, and technology sectors. As the company moves toward the commercial launch of the ARC X1, it is focusing on building the necessary infrastructure to scale its operations. This includes refining its supply-chain capabilities to ensure that the device can be delivered to the thousands of users currently on its waitlist.
While the global portable gaming console market continues to grow, with valuations reaching approximately $3.89 billion in 2025 and a projected compound annual growth rate of 9.7% through 2033, the Indian market remains a distinct opportunity. By targeting this specific demographic with a tailored hardware and software solution, ARC is attempting to carve out a significant niche in the regional gaming landscape. The company's next steps involve finalizing product validation and transitioning from the development phase to full-scale manufacturing.
