Highlights
- ARC is building a gaming platform with its first handheld, ARC X1.
- The startup is targeting India’s growing demand for accessible gaming hardware.
- New funding will support ARC’s development and expansion plans.
Kerala-based gaming technology startup ARC has raised ₹10.5 Cr (~$1.10 million) in pre-seed funding led by Chimera VC and MIXI Global Investments. Meta APAC Director Dhruv Vohra also participated in the round in his personal capacity.
The Sept 8, 2026, round will fund ARC X1's engineering, manufacturing preparation, validation, and software development as the company moves toward commercial launch.
ARC plans to use the funding for product validation, hardware engineering, OWL OS, supply-chain readiness, and its gaming software platform. The capital will also support go-to-market operations, team expansion, and partnerships across content, gaming, cloud, and technology.
ARC X1 Moves From Development to Market Validation
Founded by Jobin Joseph and Kaustubh K. Jadhav in August 2025, ARC is developing X1 as a portable gaming system built around an ARM-based architecture powered by Qualcomm technology.
The platform supports native Android games, PC game compatibility, and cloud gaming through ARC's software stack. It runs OWL OS, ARC’s proprietary AOSP-based operating system, while the company develops its own hardware, software services, and gaming experiences.
ARC launched its waitlist in July 2026 and has since recorded more than 50,000 registrations. The startup has worked with Qualcomm and is using early gamer testing and feedback to refine X1 before release.
Jobin Joseph stated that ARC began with a broader question about “what gaming technology could look like” when hardware and software are designed together for markets such as India. He described ARC X1 as the first expression of that idea, with the funding helping the company deepen its technology and accelerate product development ahead of launch.
ARC Targets India’s Gap in Dedicated Gaming Hardware
ARC is targeting India’s mobile-first gaming audience, where the cost of dedicated hardware has limited access to PC and premium gaming experiences. This allows the company to test whether a more accessible handheld can expand the market for dedicated gaming devices. Globally, the portable gaming console market was valued at about $3.89B in 2025 and is projected to grow at a 9.7% CAGR from 2025 to 2033.
The investment thesis also reflects the access gap in India's gaming market.
MIXI Global Investments Managing Director, Tomoharu Urabe, noted that hardware costs remain a barrier to PC gaming access in the country. Meanwhile, Chimera VC Managing Partner, Krish Anurag, added that ARC's approach extends beyond the handheld itself, with the company aiming to build a broader gaming technology platform.
ARC X1 could mark a shift from India being primarily a mobile gaming market to becoming a market for homegrown dedicated gaming hardware.
