According to a report by Maple Capital Advisors, a bunch of investors are looking for investment opportunities in India’s gaming sector which is expected to boost the consumer traction and engagement rates. During the period between August 2020 – January 2021, the gaming sector in India attracted $544 million in investments! According to the report, this number is set to increase in the next 12-18 months on the back of higher user awareness and increased engagement rates.
Maple Capital Advisors Founder and Managing Director, Pankaj Karna has said that, “We believe gaming is now at an inflexion point with greater investment and consumer traction. With growth-oriented private equities now participating and the first meaningful IPO around the corner, gaming is poised to attract greater capital across stages, and we expect increased cross-border M&A.”
He further added that, “Consumer traction (15 percent of global traffic) on the back of greater awareness and engagement is likely to accelerate. Also, clearer category leaders are likely to emerge. We expect improved regulatory coverage or judicial clarity, especially in the real money gaming space.” More growth capital funds like Chrys Capital and TPG and others have started looking into the sector for potential investments!
Some of the major investments in this period include, $225 million investment in Dream XI (Sept. 2020), $90 million in Mobile Premier League (Nov. 2020) and $68 million in Nazara Technologies (Jan. 2021)! Esports is going to be on an upward trajectory for quite some time to come, however, some games may see a dip in engagement rates as people start heading back to work and spend less time playing and trying out new games.