India’s gaming market reaches $2.6 bn in revenue

India has more than 500 million gamers across mobile, PC and Cloud gaming platforms. India’s gaming market has reached $2.6 billion in revenue this year. India’s gaming revenue is expected to reach $8.6 billion by 2027.
PUBG mobile game developersIndia has about 120 million paid gaming users with at least $20 revenue per user, according a report by Lumikai, a gaming and interactive media venture capital fund.

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

India crossed half a billion gamers in FY22, up from 450 million the year prior. Growth is expected to be fuelled by a rapidly increasing gamer base, higher conversion to paid users, and increasing sophistication of Indian gamers,” said Justin Shriram Keeling, Founding General Partner, Lumikai.

In FY22, mid-core games (like BGMI which is banned and Free Fire) were the fastest growing gaming category, achieving growth of 32 percent, grossing combined revenues of $550 million.

Nearly 48 percent of gamers spend money on mid-core games and 65 percent of paying gamers claim they have engaged in in-app purchases at least once.

Indian gaming companies are on track to raise $513 million for the calendar year. Gaming sector funding is up 380 percent from 2019 and up by 23 percent from 2020.

Web3 emerged as an increasingly popular technology in games, with 30 percent of 450 Indian Web3 companies operating in gaming. Web3 games in India have raised $400 million in funding in 2019-22.

India-based content is growing in popularity with 80 percent of gamers showing a proclivity to play games based on Indian intellectual property.

Lumikai has backed nine gaming startups including Loco, Bombay Play, Elo Elo, Studio Sirah, Cloudfeather Games.