The online gaming industry is growing at a CAGR of 22% according to a report released by boutique investment bank Maple Capital Advisors titled ‘Gaming – India Story’. The report also claims the Indian Gaming Industry is expected to grow around 41% annually because of the growth of digital infrastructure and a substantial rise in quality and engaging gaming content. The gaming industry in India is set to be valued at $3,750 million by 2024. India’s online gaming industry has already attracted $350 million in investments from venture capital firms between 2014-20. India is the second largest market world-wide for application downloads. “With growing internet penetration, compelling economics, usage statistics and increasing ecosystem of entrepreneurs and developers focusing on this space we expect good growth in investments which are likely to at least double in this space in the next 1-2 years,” as Pankaj Karna who is managing director, Maple Capital Advisors, said.
There are around 400 gaming startups in India with more than 500 million smartphone users as of December 2019, mobile gaming has taken the lead by tapping 85% share of online gaming in India. Thus it is pretty evident that several gaming developers are going to capitalize on the increasing number of smartphone users. The report highlights that the three key segments of online gaming are like Real Money Games (RMG), Mobile-centric/casual games, and e-sports.
The fantasy sports landscape in India has witnessed a significant transformation as the number of fantasy sports operators has increased by 7x over 2016-2018, where as the number of users has grown by over 25x from June 2016 to February 2019.
Because of the Covid-19 and subsequent lockdown, between the weeks of February 10-16, 2020, and March 16-22, 2020, visits to online gaming websites or apps rose by 24%. Engagement, as measured by the time spent on gaming sites or applications, also increased by 21% during the same time period. Platforms such as Games2Win, WinZo Games, Hitwicket, Gamerji, and Rummy recorded a tremendous increase in daily user base as well as time spent. Dream11, MPL, and also other fantasy sports gaming platforms faced a dip in revenue as IPL and other live sporting events got postponed.