India’s online gaming industry saw record interest in the initial nine months of 2021, at the beginning of flooding the popularity of mobile games during the pandemic, as per another report.

Gaming startups packed away around $911 million from venture capital (VC) firms and private equity (PE) players for the initial nine months of the year, while the sector saw consolidations and obtaining bargains worth $699 million, acquiring the absolute investment in the sector to around $1.6 billion for the period, according to a report by Maple Advisors created in association with All India Gaming Federation (AIGF) and Ikigai Law.

To put things to set, the gaming sector in India had drawn in $350 million in investments from VC firms between 2014 and the initial months of 2020, developing at a compound annual growth rate of 22%, as per an August 2020 report by Maple Capital Advisors.

During the August 2020-January 2021 period, the sector had drawn in an all-out $544 million in investments, which includes both endeavor financing and acquisition deals.

“Given the size of India’s populace, expanding user foothold, and ARPU, global gaming players (strategics) and global private value reserves have as of now begun showing interest in the Indian gaming environment. With the ascent of esports and vivid media gaming organizations in India, we anticipate further development of the market. In general, we anticipate that the investments should twofold in the following 12-year and a half” said Pankaj Karna, Founder, and MD, Maple Capital Advisors.

Gaming platforms and Fantasy Sports draw in the larger part of investments

The sector saw 42 deals during the 9 months’ time frame, of which 28 were VC and PE transactions and 14 were acquisition deals.

Real money games and fantasy sports pulled in most of the interests in the sector, sacking around $700 million in the initial nine months of 2021. This anyway does exclude the mammoth $840 million subsidizing that Fantasy Sports declared on November 24.

Real money games represented 39% of the VC and PE transactions for the period followed by Casual games (32%), gaming platforms (18%), and Esports (11%).

As far as consolidations and acquisitions, real money games contributed for 36% of the deal volume for the 9-month time frame, trailed by ESports (21%), Casual gaming (7%), and others (21%).

In the next 12-year and a half, gaming platforms and esports fragments will observe enormous capital mixture from development VCs and PEs while numerous new vivid media gaming organizations are probably going to draw in beginning phase investors, the report said.

It added that the sector has likewise begun seeing union, with enormous organizations hoping to extend their quality through inorganic development.

With the quick development of the nation’s gaming market, a few worldwide players are likewise liable to explore the Indian market through collaborating/obtaining homegrown organizations in the following 12-year and a half, the report said.

Credits: Moneycontrol