The first nine months of 2021 saw $1.6 billion invested in Indian gaming startups. Naturally, the largest roamers of the ecosystem got the bulk of it, as Dream Sports and the Mobile Premier League (MPL) combined account for almost 90 percent of the fresh funding, says a report by the Internet and Mobile Association of India (IAMAI) quoted by the FPJ.
Smaller players on the Indian market also got their share as the likes of social gaming app WinZO, real money skill gaming platform Zupee and AR game-based learning startup PlayShify roped in millions of dollars of premium venture capital. At the same time, Gurugram-based esports and gaming firm Nodwin Gaming got a $22.4 million investment from the developer of PUBG Mobile Krafton.
The Shift from Global to Local Content
The surge of investments pouring in marks a shift of tectonic proportions from global content to locally produced one. WinZo co-founder and CEO Paavan Nanda comments: “While game development earlier was primarily dependent on international publishers, there has been a seismic shift with an increased focus on local development which is of high quality in nature. This has catapulted India towards value-driven consumption.”
At the same time, studies advise international operators who wish to successfully enter the Indian social and real money gaming ecosystem to adapt to the rising demands for local content. Such businesses should first of all focus on providing traditional desi games like Teen Patti, Andar Bahar and Rummy before offering online blackjack real money and other globally popular titles on their platforms.
Mobile Gaming is the Backbone of Desi Gaming Industry
According to the IAMAI report, more than 90 percent of the current $1.6 billion of revenues of the Indian gaming market have been generated by mobile gaming. Moreover, the number of mobile gamers is expected to grow to 65 crore by 2025 from the existing 43 crore.
“Affordable smartphones with high-speed internet access have made it easier and convenient for a user to consume their favorite format of interactive games from anywhere,” says WinZo’s Nanda.
Games originally designed for PC or console are being redesigned for mobile and while smartphones become more affordable, they carry stronger hardware allowing users to enjoy games that require medium to high specifications.
The unique character of India’s mobile-first gaming sector is testified by a comparison with the world’s largest markets with mobile holding a 59 percent share in China and just a 28 percent share in the US. Consoles are the dominant force in the US accounting for 55 to 60 percent of the gaming sector, and PC gaming is the second largest sub-segment on the Chinese market with a 40 percent share.
RMG and online casino games generated 53 percent of mobile gaming revenues in India for 2020, while in-app purchases (IAPs) brought 27 percent. Business-to-business (B2B) payments in the form of ad placements accounted for the remaining 20 percent of the sector’s revenues.
Notably, while 89 percent of USA residents and 60 percent of the Chinese population had access to the global net in 2020, internet availability in India was just 46 percent. Projections expect internet availability in the country to rise to 62 percent by 2025, which again indicates the massive potential for growth of the local gaming industry.
Bharat’s Young Demographics Provide a Solid Base for Growth
Besides the tens of crores of players, India’s young population has supplied the country’s booming gaming ecosystem with armies of developers, designers, publishers, streamers and influencers that substantiate the expectations of continuing growth. The local market’s impressive CAGR (compound annual growth rate) of 37 percent for 2018-2019 accelerated further to 39 percent for 2019-2020, and operators expect the upward trend to continue backed up by the country’s young demographics.
“Younger people are also more likely to play online games, particularly on their smartphones and with 60 percent of India’s online players between the ages of 18 and 24. India is a great country for the growth of online gaming,” says Sean Sohn, Head of Krafton’s India Division.
The Pandemic Added Fuel to the Fire
The staying home trend caused by the Covid-19 related restrictions and lockdowns further accelerated the growth of the sector with mobile app downloads growing by 50 percent and user engagement rising by 20 percent.
“The years 2020 and 2021 have been very prosperous for the gaming industry, with a large rush of games, gamers and developers,” concludes Sohn.
