The gaming industry is thriving – so it’s no surprise that investors all over the world are keen to invest their money in this rapidly-growing sector. With total global revenue of $159 billion in 2020, some analysts believe that gaming could be worth over $200 billion in just three years’ time. This means that the potential returns for savvy investors who want to cash in on this growth are huge.
In India, this is certainly proving to be the case. The country’s gaming industry has attracted vast amounts of investment over the last few years, as developers are rushing to meet the soaring demand for new games and gaming platforms.
In this article, we’ll take a closer look at how investment is transforming the world of Indian gaming. From which companies are investing the funds to how this capital is being used, read on to find out more about this booming industry today.
How Much Money Has Been Invested?
According to a report by the company Maple Capital Investors, venture capitalist firms (VCs) have invested around $350 million into the Indian gaming industry between 2014 and the first few months of 2020. And that’s not the end of the matter. The Managing Director of Maple Capital Investors, Pankaj Karna, said that he expected the level of investment to “at least double” in the next couple of years.
Where Is the Money Going?
Whether we’re searching for our new favourite games on sites such as indiaslots.com or loading the latest video game on our mobiles, there’s never been more choice when it comes to gaming. Part of this is due to the diversity of different funding opportunities. Some of the most noticeable Indian gaming investments over the last few years include:
· Tencent and Steadview Capital invested $100 million into Dream11, an Indian fantasy sports platform
· Sequoia and Time’s Internets invested $41 million into the mobile e-sports app Mobile Premier League
· One97 and AG Holdings invested $20 million into Paytm Games, an all-in-one online gaming destination
How Has the Industry Changed?
With more money being pumped into the Indian gaming industry, let’s explore how the sector has changed as a result.
One of the most striking changes is the fact that it’s enabled gaming to become big business. There are now more than 400 gaming start-ups in India, all of which have been able to secure at least basic funding. The fact that so many entrepreneurs are choosing to start companies in the gaming space is incredibly telling, showing that the sector is considered a strong money-maker by potential business owners.
Another key way in which investment is transforming Indian gaming is that it’s funding increasingly niche areas of the sector. In the report from Maple Capital Investors, the company noted that the fantasy sports landscape has been completely revolutionised by new levels of investment.
In fact, there were around seven times more fantasy sports operators in 2018 than they were in 2016, while the number of users increased by 25 times between June 2016 and February 2019!
Whether you’re a devoted gaming fan with all the latest equipment or a casual dabbler who prefers to play games on the go, it’s clear that almost every aspect of Indian gaming is being transformed by investment.