Indian gaming startups are attracting investments with a record capital invested and potential for global expansion
Data accumulated by Venture Intelligence showed that India’s gaming industry has attracted investments amounting to an estimated $438million from venture capital firms since April of last year, with $107million coming in the new year.
As of December 2019, India boasts around 400 startup and more than 500 million smartphone users, with 85% deriving from online gaming. This has given gaming developers the means to capitalise on a booming market.
The general partner at Lumikai, Salone Sehgal, stated:
We have seen more investments in gaming last year than we have seen in the last five years together. The market has reached an inflection point for games. There is equal interest from financial institutions as well as strategic capital looking for partnerships and acquisitions in India
Lumikai, an early-stage venture capital fund focused on gaming, has several deals planned for Indian startups for 2021. In September 2020, fantasy sports startup Dream 11 raised $225 million and earlier this month, mobile e-sports platform Mobile Premier League (MPL) raised $95 million, moving closer to the unicorn club with a valuation of $945 million.
According to Sensor Tower, an app analytic company, standalone gaming apps on Google Play Store and Apple App Store registered growth of 51% and 30% in revenue from in-app user spending in 2020.
Meanwhile, in 2019, there were 357 million gamers in the country, and that number is consistently increasing. Due to the pandemic, that have caused business to shut down, the gaming industry received a multitude of new users, with further growth expected in 2021.
India is a fast paced growing region as Fredrik Brannlund stated while speaking to SiGMA Magazine in our latest issue:
‘Despite the immaturity of the Indian iGaming market, it’s still the third-ranking country by volume of Google searches for ‘lottery’, coming in behind tians, the UK and the USA. If you go ahead and search for the local poker game ‘Teen Patti’ on Youtube, you will find millions of views on videos produced on a tight budget’
The country’s fast growing rate is all down to gamers in the country showing interest in all three segments online gaming, namely: real money games, casual games, and e-sports, and investors are beginning to see the global growth potential of some of these platforms.
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