India’s gaming market will be valued at $8.6 billion by 2027 as it tickers a CAGR of 27%, as per the report.

As per the report by Lumikai, a gaming-focused venture capital fund, the number of gamers is expected to touch 700 million by FY 2025, with a CAGR of 12%.

“Industry growth is expected to be fuelled by a rapidly increasing gamer base, higher conversion rates to paying users, and the 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,” said Justin Shriram Keeling, founding general partner at Lumikai.

As per the report, Indians spent an average of 8.5 hours per week on mobile games. Time spent on top mid-center games was around twofold that of top casual games.

A game called Free Fire stood out, with an average of 109 minutes spent per user each day. The report said that the average income per paying user grew 11% to $20 each year, with 2 million new paying users (NPUs) added each month.
Almost 48% of gamers invest on mid-core games, while 65% of paying gamers said they made in-app purchases at least once.

Salone Sehgal, the founding general partner at Lumikai, said that the last 28 months have been watershed years in terms of attracting VC investment of over $2.6 billion in the Indian gaming landscape.

“Sustained capital investment and liquidity outcomes in the form of strategic exits valuing over $750 million, 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,” she said.

Credit: Business Standard