Mobile gaming has come a long way in India in recent years thanks to increased internet penetration, smartphone adoption, and disposable income and is showing no signs of slowing. The health crisis has only accelerated India’s gaming market, with ongoing lockdown restrictions forcing residents to stay home. Now, the Indian gaming market is expected to reach $3.75 billion by 2024, while the number of online gamers in India is forecast to grow from 365 million to 510 million by 2022. Meanwhile, India’s real-money gaming market is expected to grow at a CAGR of 50-55% to reach $1.5 to $1.7 billion during the same period, creating a massive opportunity for investors.
Online fantasy sports platforms like Dream11, MPL and My11Circle are already reaping the benefits, with user engagement and revenues growing significantly this year. Esports has also witnessed significant growth in India over the last few years thanks to smartphone adoption, as well as the rise of mobile games like PUBG Mobile, Free Fire, Clash of Legends, Call of Duty Mobile and PC and console games like DOTA2, CS:GO, Fortnite and PUBG. Then there are mobile gaming startups like GoodGamer, which are entering the Indian gaming market with a bang.
Sports Fantasy Gets Boost During IPL Season
The return of the Indian Premier League (IPL) is one reason fantasy sports platforms have fared so well in recent months, with the user base growing to over 90 million registered users. Cricket is hands down the most popular sport to watch in India with over 900 million fans, so naturally, the IPL is the most popular sport to bet on.
The IPL was initially scheduled to be played from April to June but was pushed to September due to the pandemic. Luckily, the bets began rolling in once the season kicked off, providing a much-needed boost to sports fantasy platforms after the dry spell.
However, with the IPL season now over, market participants are likely wondering how these online fantasy sports platforms will remain relevant and generate revenue when the season ends. Fortunately, the lull during the pandemic forced these platforms to think outside the box and develop additional offerings for its users.
In order to remain competitive and revenue-generating during the offseason, Dream11 is in talks to acquire Indian esports platform SoStronk. Meanwhile, other platforms have shifted their focus to games, quizzes, and old favorites like rummy, poker, and ludo to keep users engaged. MyTeam11 introduced MyTeam11 Quiz and MyTeamRummy, which the company says has ensured user growth and engagement.
Then, there are startups like Good Gamer Corp, which launched its GoodGamer Fantasy Gaming App into the Indian market in September. GoodGamer is India’s first daily fantasy sports and esports gaming platform, currently covering Cricket, Football (Soccer), and CS:GO. GoodGamer Fantasy is also the world’s first fantasy cricket app to offer prop contests, which is a particularly smart tactic to differentiate the company from competitors in the highly saturated market. Prop contests are based on specific events during the game that are independent of the final outcome and are one of the fastest-growing segments of the US sports gaming industry.
Just one month after launch, the GoodGamer Fantasy Gaming app has reached an impressive 250,000 registered users and continues to grow that number daily.
“The early popularity of our platform has been very exciting and we couldn’t be happier with our first couple of months in the ever-growing Indian gaming market,” said GoodGamer CEO Charlo Barbosa. “To grow to over 250,000 registered users in less than a month was exhilarating, and it hasn’t slowed down since. We look forward to adding additional features in the coming months to keep our growing user base entertained and engaged.”
Investments Pour Into Indian Gaming Market
Foreign venture capitalists, buoyed by the epic growth of fantasy sports in the US and other parts of the world, have been pouring funds into the Indian gaming sector in hopes that India’s love of cricket will transform it into the next frontier for online gaming.
In fact, India’s gaming industry has attracted roughly $350 million in investments from venture capital firms between 2014 and first few months of 2020, growing at a CAGR of 22%. Some of the biggest investments include a $100 million investment in Dream11 from Chinese online giant Tencent and Steadview Capitals, Sequoia and Times Internet’s $41 million investment in Mobile Premier League (MPL), and One97 and AG Tech’s $20 million investment in PayTM Games.
Of course, smaller companies are also attracting investor interest. In October, GoodGamer closed a seed funding round for gross proceeds of C$2.5 million which the company plans to use primarily for user acquisition.
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