Currently worth $2.6 billion, the Indian gaming business is projected to grow to $8.6 billion by 2027: Report

Mid-core titles, such BGMI and Free Fire, saw the biggest gain in gaming income in FY22, increasing by 32% and bringing in around $550 million total.

According to Interactive Media Venture Capital Fund Lumikai’s most recent study, India’s gaming sector has hit $2.6 billion and now has 507 million players. The domestic gaming market is anticipated to almost double to $8.6 billion by 2027, according to the research titled “State of India Gaming report FY22.”
When expressing his opinions on the study, Justin Shriram Keeling, founding general partner of Lumikai, remarked, “India’s gaming business this year achieved important inflection points, exhibiting tremendous growth across the board. In FY22, India had more than half a billion players, an increase from 450 million the year before.

Keeling said, “Industry development is likely to be powered by a fast growing gaming population, higher conversion to paid users, and growing sophistication of Indian gamers.

The VC fund asserts that the analysis covers the whole Indian gaming business. It included information from a demographic sample of 2,240 respondents, outside data suppliers, leader interviews, and company-exclusive insights.

Lumikai’s founding general partner, Salone Sehgal, said: “In terms of drawing VC investment totaling more than $2.6 billion into the Indian gaming industry, the past 28 months have been pivotal years. Entrepreneurs and investors alike are more interested now than ever because to sustained capital investment and liquidity results in the form of strategic exits valued at $750M+, numerous unicorns, and a publicly listed firm. This ongoing momentum ought to encourage further innovation and entrepreneurship in the Indian gaming sector.”

The survey estimates that there were over half a billion gamers in India in FY22, up from 450 million the year before. With 120 million paying users, or about one-fourth of the total, there is an average revenue of $20 per paying user.

Additionally, with 15 billion downloads throughout the year, India was the world’s largest consumer of mobile games in FY22.

Mid-core titles, such BGMI and Free Fire, saw the biggest gain in gaming income in FY22, increasing by 32% and bringing in around $550 million total.

It also showed that Web3 became a more widely used technology in games. Between 2019 and 2022, India’s Web3 gaming industry attracted almost $400 million in financing.

Nearly 48% of Indian gamers who pay for games spend their money on mid-core titles. In addition, 65% of gamers who pay a subscription say they have made at least one in-app purchase.

For the fiscal year FY22, Indian gaming businesses are on target to raise $513 million. Funding for the gaming industry is rise 380% from 2019 and 23% from 2020.

With 80% of gamers favouring to play games based on Indian intellectual property, India-based entertainment is becoming increasingly popular. With a 60:40 male to female ratio, it was discovered that there are more women playing video games in India.