ARC Raises $1.18 Million to Take on India’s Handheld Gaming Market With ARC X1

India’s gaming hardware market could be getting a serious new challenger. Bengaluru-based gaming technology startup ARC has raised INR 10.5 crore (approximately US$1.18 million) in pre-seed funding as it accelerates development and commercialisation of its first portable gaming device, ARC X1.

The ARC investment round was led by Chimera VC and MIXI Global Investments, with participation from Dhruv Vohra, Director, Meta, APAC, in his personal capacity.

But the money is only part of the story. ARC says more than 50,000 gamers have already joined its waitlist, while the startup has also collaborated with Qualcomm ahead of the product’s commercial launch.

ARC Wants to Build India’s Gaming Hardware Challenger

ARC was founded by Jobin Joseph and Kaustubh K Jadhav with an ambition that extends beyond launching another handheld console.

The startup is developing its own hardware and software stack, with ARC X1 positioned as the first product in a broader gaming ecosystem built around devices, operating systems, software and gaming experiences.

The fresh INR 10.5 crore (US$1.18 million) will fund hardware engineering, product validation, manufacturing and supply-chain preparation. ARC also plans to expand development of its proprietary OWL OS, gaming software platform, team and go-to-market operations.

Strategic partnerships spanning gaming, cloud, content and technology are also expected to form part of the company’s next phase.

50,000 Gamers Are Already Waiting

The biggest early signal for ARC may not be the funding round—it could be the response from gamers.

The company says ARC X1 has crossed 50,000 waitlist sign-ups before commercial availability, giving the startup an early community to draw on as it fine-tunes the product.

ARC says it has adopted a community-led development approach, involving gamers in testing and feedback programmes before launch.

That could prove important in a market where hardware specifications alone may not be enough to win consumers.

Qualcomm Partnership Adds Muscle to ARC X1

ARC X1 is being built around an ARM-based architecture powered by Qualcomm technology and will run OWL OS, the company’s proprietary gaming operating system based on the Android Open Source Project (AOSP).

ARC is deliberately positioning OWL OS as more than a conventional Android interface.

The company says the operating system is being designed around controller-first navigation and gaming-specific optimisation, with the goal of delivering a dedicated gaming experience.

ARC X1 is expected to support multiple gaming formats, including native Android games, PC-game compatibility through ARC’s software stack and cloud gaming.

India Could Be the Bigger Opportunity

ARC’s timing comes as portable gaming with handheld continues to expand globally.

The global portable gaming console market was valued at around US$3.89 billion (approximately INR 346 billion) in 2025 and is projected to grow at roughly 9.7% annually between 2025 and 2033, according to figures cited by the company.

India represents a particularly interesting opportunity.

The country has a huge mobile-first gaming audience, but dedicated gaming hardware remains relatively expensive and less accessible to a large portion of consumers.

ARC’s pitch is therefore straightforward: build gaming hardware specifically with Indian gamers and emerging markets in mind rather than simply importing an existing premium category.

Investors See More Than Another Handheld

Chimera VC Managing Partner Krish Anurag said ARC’s opportunity goes beyond creating another gaming device, arguing that major changes in gaming have historically been driven by shifts in the underlying technology platform.

MIXI Global Investments Managing Director Tomoharu Urabe also pointed to the cost of dedicated hardware as a barrier to PC gaming in India and said ARC X1 could make handheld gaming more accessible.

For ARC, the ambition is even bigger.

The company wants to control more of the gaming stack—from hardware and silicon to operating systems, software and eventually developer and content ecosystems.

Can ARC Crack India’s Gaming Hardware Market?

ARC now faces the hardest part: turning early enthusiasm into a commercially successful product.

A US$1.18 million (INR 10.5 crore) pre-seed round gives the company additional runway, while the 50,000-plus waitlist provides an encouraging early audience.

But the handheld gaming market is brutally competitive, with established global players already fighting for gamers’ attention and spending.

ARC’s bet is that an India-first approach, proprietary software and accessible hardware can carve out a new space.

If the company gets that formula right, ARC X1 could become more than another gaming handheld—it could be the first step toward an Indian-built gaming platform aimed at millions of players across India and other emerging markets.