India’s gaming market hit $2.6 bn in FY22 and is projected to reach $8.6 bn in FY27. The real money gaming (RMG) revenues currently constitute 57pc of market size but future growth is projected to be driven by in-app purchases growing at a 34pc CAGR, according to Lumikai Gaming Report.
The report states that India crossed half a billion gamers in FY22, up from 450 mn the year prior. There were 120 mn paying users in FY22, which represents a 24% conversion rate. The revenue is on the rise with improving supply and higher propensity to pay. India had the highest share of game downloads (around 17pc) globally in FY22.
The report further states that games played in India had 2 bn cumulative MAUs in FY22. Cumulative India MAUs for top 10 games in FY22 was 358 mn. Average revenue per paying user grew 11pc to $20/year in FY22. There were 2 mn new paying users (NPUs) being added monthly in FY22.
According to the report, Male: female ratio of surveyed gamers yielded a 60:40 ratio, equally split between metro and non-metro cities. The mid-core titles like Free Fire, BGMI and Genshin Impact saw strong daily engagement with over 80 minutes of average daily playtime per user. With more than 10pc of mid-core gamers playing for more than 10 hours per week. Key market inflection points such as 5G, Web3 and Google’s RMG pilot are opening new opportunities for growth 80pc of gamers in India show a propensity and preference for culturally resonant gaming content.
In the last 2 years, the market has already yielded 6+ strategic exits amounting to $775M, 3 unicorns, and the public listing of Nazara Technologies. Indian gaming companies have raised $2.8 bn from domestic and global investors in the last 5 years. Funding is up 380 pc from 2019 and up 23pc from 2020.
