With the rise in participation for online fantasy sports as well as other orthodox esports, the sector has seen a massive boom in investment, with Maple Capital Advisors predicting that the Indian online gaming sector has secured $544 million investment during August 2020-January 2021 period.
With more than 400 million gamers in India, the sector has been few of the profitable businesses even during the time of Coronavirus and led to investors looking to deploy funds in the sector. As a matter of fact, 15 percent of the global gaming traffic came from the Indian gaming market which is at an inflexion point.
"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," Maple Capital Advisors founder and MD Pankaj Karna said, reported PTI.
"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," he said.
According to the report, a number of growth capital funds like Chrys Capital and TPG participated and numerous others have started to look at the sector as early-stage funding or proper VC insertion. Dream11 secured a USD 225 million investment in September 2020 while Mobile Premier League was funded USD 68 million by Nazara Technologies in December.