Indian Start-Ups Face Funding Squeeze but Gaming Expected to be Winner in Post-COVID-19 World, Experts Say

A lack of live sports during the coronavirus pandemic has made big winners of online gaming apps amidst a general move towards virtual connectedness, argues a recent report from BARC and Nielson Media.

And while a funding crunch is hitting the Indian start-up ecosystem, investors on a panel put together by Incv42 are bullish on the future of online sports and entertainment.

These are two key take-outs from reports and analysis published this month.

Other findings from the sixth part of the "Crisis Consumption on TV and Smartphones" report from BARC and Nielsen Media were that the gaming, education, and video conferencing sectors have been the big gainers during the worldwide lockdown.

A lack of any sports has led to higher engagement and awareness of mobile gaming and apps, with week five and six of the lockdown in India witnessing a 30% increase in gaming, compared to the immediate pre-lockdown period.

There may be a misconception that gaming is a male-dominated world, but figures show 55% of females and 48% of males have spent time playing games online in the last month.

The reach of online gaming has increased by 72% under the lockdown, according to BARC and Nielson Media. The research was taken from 12,000 smartphone users.

While figures from DataLabs by Inc42 show a whopping 45% drop in Indian start-up funding in 2020 Q1 compared to 2019 Q4, panellists on an Inc42's webinar are bullish on the long-term prospects of the Indian market. Expect gaming, fintech, and medical services to be big winners.

The global pandemic is far from over, but the experts put together by Inc42 predict the next two years to be crucial for investors in seizing opportunities.

Joining the webinar was Dirk Van Quaquebeke, managing partner of BEENEXT, Priya Banerjee, principal at B Capital Group, Benny Chen, managing partner at BAce Capital, and Ed Roman, managing director from Hack VC.

We have recently reported on the impact of coronavirus on Indian gaming. While there have been victims of the crisis, including Silver Heritage Group and Apne11, overall companies have reported growth and taken the chance to expand their offering to take advantage of more mobile gamers.