Lumikai, an Indian Gaming, and Interactive Media Venture Capital Fund, today released the first look of its annual ‘State of India Gaming FY 2022’ report at the India Game Developers Conference (IGDC) Summit at Hyderabad.
According to the report, India was the largest consumer of mobile games in the world in FY22 with 15 bn downloads. India’s gamer population in FY22 was 507 mn, up from 450 mn the year prior, growing at a 12 pc CAGR. There are 120 mn paying gamers in the country, growing at a 25 pc CAGR. Nearly 48 pc of gamers spend money on mid-core games. 65 pc of paying gamers claim they have engaged in in-app purchases at least once.
The report revealed that the Indian gaming companies have raised $2.8 bn from domestic and global investors in the last 5 years and are on a track to raise $513 mn by the end of CY ’22. Overall funding in FY22 is 513 mn which is up 280 pc from 2019 and up by 23 pc from 2020.
As per the report, Web3 emerged as an increasingly popular technology in games, with 30 pc of 450 Indian Web3 companies operating in gaming. Web3 games in India have raised USD 400 mn in funding (2019-22).
The report further revealed that the majority of the $2.8 bn invested in the Indian gaming landscape came in the last 2.5 years. 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 gamers spent an average of 8.5 hours per week on mobile games in FY22. Time spent on top midcore games is approximately double that of top casual games, with Free Fire leading the pack with average of 109 minutes spent/user/day Average revenue per paying user grew 11 pc to $20/year, with 2 mn New Paying Users (NPU’s) added per month.
Sharing his thoughts on the report, Justin Shriram Keeling, Founding General Partner, Lumikai said, “India’s gaming industry this year hit major inflection points, registering strong growth across the board. India crossed half a billion gamers in FY22, up from 450 mn the year prior. Industry growth is expected to be fuelled by a rapidly increasing gamer base, higher conversion to paid users, and increasing sophistication of Indian gamers. With the market now truly mainstream, we are thrilled to be at the forefront of investing in one of the fastest growing and most dynamic sectors in digital India.”
Commenting on the state of the gaming ecosystem in India, Salone Sehgal, Founding General Partner, Lumikai said, “The last 28 months have been watershed years in terms of attracting VC investment of over $2.6bn in the Indian gaming landscape. Sustained capital investment and liquidity outcomes in the form of strategic exits valuing $750M+, multiple unicorns, and a publicly traded company have heightened the interests of entrepreneurs and investors alike. This sustained momentum should further drive entrepreneurial ambition and innovation in the Indian gaming industry.”
The full report will be released at the end of November 2022.