India's gaming market is experiencing unprecedented growth, projected to exceed $7 billion by 2026, up from $2.2 billion in 2021, driven by a burgeoning user base and increasing willingness to pay. The rise of mobile gaming, accelerated by COVID-19 lockdowns and demographic factors, has led to a significant increase in both the number of gamers and their engagement, with over 50% of them becoming first-time payers. Insights from extensive surveys reveal evolving gaming preferences and monetization strategies, highlighting a strong shift towards in-app purchases and local gaming content.

1. Leveling Up
INDIA’S
GAMING
MARKET
Solve. New
Inside Digital Entertainment’s
Fastest Growing Sector
November 2021
Powered by
© 2021 RedSeer Consulting confidential and proprietary information
2021
Knowledge
Partner
Technology
Partner

2. 2
©RedSeer
Foreword
As India’s first and most active gaming and interactive fund, our mission for this report is to shine a light on the
true potential of India’s gaming market. We’re proud to present the most comprehensive deep dive of India’s
gaming market ever undertaken. This inaugural report leverages insights from India’s gaming ecosystem
leaders, knowledge partners, and proprietary Lumikai insights gleaned from conversations with 500+ founders
from India’s gaming sector.
India’s gaming market is due to surpass $2.2B in value in 2021, growing 3x to over $7B in 2026. The
market is also maturing faster than expected across all key markers — in user sophistication, propensity to pay,
quality of talent, capital inflows, and exits. This represents enormous upside for founders and investors in this
space over the coming decade.
Monetisation has always been the billion-dollar question for India’s mass scale audience. We map out
remarkable inflection points for the fastest growing gaming market in the world. India for two years running has
seen the highest proportion of first-time paying gamers (over 50% YoY) out of any country in the world. At a scale
of ~10B gaming apps due to be downloaded in 2021, this represents a once in a generation growth opportunity
across India’s entire gaming value chain.
We also include never-been-seen-before insights from the largest panel of Indian gamers ever surveyed. Over
2,000 domestic mobile gamers were interviewed across 30 categories on their habits, preferred features,
motivations, and propensity to spend — split across multiple demographic and socio-economic profiles.
We’re thankful to all our partners and LPs who continue to support us on this journey, and we look forward to
sharing future insights as the market continues to grow and matures.
Justin Keeling
General Partner, Lumikai.
Salone Sehgal
Team Lumikai, October 2021
General Partner, Lumikai.

3. 3
©RedSeer
Preface
The Indian gaming market is coming of age. Restrictions imposed in COVID lockdowns led users to explore alternate forms of entertainment. This,
in turn, was provided by mobile and digital games. The growth and user-base of games surpassed that of popular OTT & Video-on-Demand
services by as high as 4-times, during the period.
India's demographic dividend, with its large young population and increasing income, shows a strong potential for gaming, a market growing
exponentially as the mobile internet penetration sky-rocketed in 2020. The lockdown encouraged new users to pay for games, which saw an
unprecedented growth in “First-time payers”. Several other factors have further driven the growth of the sector; and resulted in a large gamer base
of 400-450 Mn, which is expected to reach to 700 Mn by the end of 2025.
New formats such as HyperCasual, Social games and eSports are expected to outperform the market growth rate in the next 5 years. As gamers
mature, the monetization streams are also expected to evolve with the proportion of In-App Purchases and Ad revenue increasing to the overall
revenues of Gaming companies.
We at RedSeer, with Lumikai - India’s first and most active gaming and interactive fund, have also been able to dissect the complex gaming sector
in various categories; and analyze the consumer behavior by surveying over 2000 gamers in India. Amongst other findings, we gathered that while
the average monthly spend on games is around $1.5, it is as high as $3.5 for Real-Money games.
We hope that the report will help the reader gain a perspective of the sector, and help developers and publishers in their game development
and management.
Anil Kumar
Founder & CEO
RedSeer

4. 4
©RedSeer
Executive
Summary

5. India’s gaming market is at a once in a generation inflection point exceeding previous estimates
on sophistication, scale, growth, and propensity to pay (1/2)
Executive Summary
20% of roughly 400 Mn active gamers in India
choose to pay for games
Spend/ month
Overall RMG Non-RMG
India’s Gaming
Market Size: $2.2
Bn growing to $7B
in five years
Propensity to Pay
Growing: Average
yearly spends at
$16 per gamer
The gaming market in India is a $2.2 Bn industry,
and is projected to grow at ~30% CAGR to reach
$7B market -- more than 3X in the next 5 years.
India is transitioning from a net importer of
global gaming titles to a global exporter of
content and IP.
An estimated 96 Mn Indian users are forecast to pay
for games in 2021. Paid gamers are forecast to reach
~240 Mn (3x) in the next 5 years.
India’s percentage of first new time paying users
(NPUs) in gaming is the fastest growing in the world
two years running, at 40% (2020) reaching 50%
in 2021.
Survey results show that up to 50% of new midcore
and hardcore game users pay $7-$14 per month.
Average gamers spend ₹1,200 ($~16) per year on
games, with RMG users spending INR 3,000 ($~40)
per year. (Survey results across a sample of 2180).
Av spend per paying user is $77/year.
₹~100 ₹~250 ₹~50
5
©RedSeer Note (s): For this report, we have included all games played or viewed on mobile, PC, Consoles and any other digital medium.
CAGR ‘21-’26
Casual & Hyper-
Casual
Mid & Hardcore
RMG
PC & Console
Esports
FY19-FY26P. USD Bn
30-35%
25-30%
25-30%
~10%
40-45%
Gaming market in India: Trend by Segment
FY19 FY20 FY21 FY26P
$~0.8 Bn $~1.8 Bn $~2.2 Bn $~7 Bn
40%
49%
7%
3%
1%
0%
12%
22%
8%
25%
52%
3%
2%
19%
24%
50%
1%
3%
19%
27%
25-30
2
1

6. Indian Gamers’ Behaviour
Revenue growth
increasingly being
driven by new
forms of
monetisation
The market is
maturing both from
a demand (user) and
supply (developer)
perspective
In-app purchases now constitute 27% of
domestic gaming spending, with IAP growth
forecast to outstrip RMG and ad monetisation
through 2025 and beyond.
With RMG remaining in a regulatory grey zone,
developers are implementing newer, fast
growing forms of monetisation such as
subscriptions and virtual tipping/gifting.
Users are maturing and localising in their
behaviour – from time-spent gaming,
engagement with new midcore gaming
formats, and over 60% expressing interest
in more Indian themed games.
The number of gaming companies has
seen a geometric increase, from 25 studios
in 2015 to over 500 in 2021.
Time Spent Gaming : Average weekly time spent on gaming
has risen to ~3.6 Hours from ~2.5Hr before Covid lockdowns.
Esports, Streaming & Social gaming are rapidly growing in
India; especially in regional & vernacular markets.
India Themed Games : Players surveyed indicated a strong
preference towards games with Indian central themes or
characters.
6
©RedSeer Note (s): For this report, we have included all games played or viewed on mobile, PC, Consoles and any other digital medium.
3
4
India’s gaming market is at a once in a generation inflection point exceeding previous estimates
on sophistication, scale, growth, and propensity to pay (2/2)
CAGR ‘21-’26
~20%
~30%
~40%
$~0.8 Bn $~1.8 Bn $~2.2 Bn $~7 Bn
(27%)
(17%)
(26%)
(15%)
(31%)
(53%)
(11%)
Ad Revenue
In App
Purchases
(IAP)
RMG
Others
Gaming market in India: Trend by Revenue Streams
(54%)
~0.3
~0.5
~0.9
25-30%
~0.1
~0.3
~0.6
~1.2
~0.1
~0.7
~2.1
~3.7
~0.3
FY19 FY20 FY21 FY26P
Executive Summary

7. 7
CONTENTS 1. Gaming in India: Context & Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment trends enabling growth in Gaming
6. Appendix
©RedSeer

8. 8
Macro perspective and impact on India Gaming
Descriptive
$~7 Bn Gaming Market by 2026
©RedSeer
India is emerging as one of the world’s largest gaming markets, especially post the COVID 2020/21 lockdowns;
with multiple macro drivers, domestic market is expected to grow to $~7 Bn by FY2026.
Note (s): For this report, we have included all games played or viewed on mobile, PC, Consoles and any other digital medium.
Source(s): RedSeer Analysis, Secondary Research.
Young
Population
~500 Mn individuals in the
age group of 15-35 years
Income increased ~45%
in last 5 years
Sophisticated gamers with
exposure to Western games
World’s cheapest data rates
at just $0.1/GB
Large ‘target segment’ and
potential user base
Increased ability to
spend when motivated
Strong culture of games and
social motivations for users
Lower barriers to
access games
Digital India and
Internet Access
Increasing
Disposable Income
Social &
interactive Culture
India Gaming market is witnessing an unprecedented growth phase
fueled by various social, economical and technological factors

9. 9
Media Consumption in India
Avg. Time spent per users per week (Hours)
©RedSeer
Note (s): Pre-Covid : 13Jan-2Feb ’20 ; Lockdown Week 1 – 21-27 Mar ’20 ; Lockdown Week2 – 28Mar-1Apr ‘20.
Source(s): RedSeer Analysis, Survey Results, Nielsen SmartPhone Panel, BARC report.
Gaming is increasingly becoming the more popular medium of recreation in India;
with the growth in time spent four times higher than time spent on OTT Video during lockdown
Gaming on smartphones has grown in popularity especially during the COVID lockdowns. The time spent on gaming has increased ~45%, which is higher than other forms of
entertainment consumption such as video-streaming services
Approximately 30% of users also claim that their usage of mobile games has increased during the past 12 months and for ~20%, it is likely to increase going forward as well.
Decreased
Remained
the same
Increase
Past Behaviour v/s Future Expectation
Change in Time Spent Gaming
Pre-Covid Lockdown Week 1 Lockdown Week 2
Gaming
2.5
3.1
3.6
+44%
OTT Video Past 12 Months Next 12 Months
3.5
3.9
3.3
+12%
30% 19%
69%
11%
62%
8%

10. Improved
hardware allowed
evolution of
complex games
like Bounce &
Prince of Persia on
mobile etc.
Pre-installed
games like Snake
were popular on
mobile phones.
PC & console
games were
considered
aspirational.
Early adoption of
downloading games
on phones; especially
with popularity of
Android; started.
PC & Console games
like Age of Empires,
and FIFA were popular.
10
Indian Gaming Sector Timeline
2005-2010
Emergence of
Digital Gaming
Experimentation phase Monetization Phase Adoption & Crystallization Phase
2011-2015 2016-2018 2019-2020 2021 and Beyond
A
B
Major Milestones
©RedSeer
Note (s): The trend in India gaming reflects the inflection points in customer behaviors
Source(s): RedSeer Analysis, Secondary Research
The Indian Gaming Market has accelerated post-Jio, with Covid lockdowns boosting
experimentation and social gaming; along with a rise on spending through RMG
Launch of Jio
Led to growth in game
downloads and online
gaming. Also thrusted India
from an experimentation
phase to a monetization of
games phase.
Emergence of RMG
Real Money Games (RMG)
like Rummy, Fantasy Sports
and Poker became popular;
proving the viability of
monetization models.
Growth of Social Gaming
COVID-led lockdowns
encouraged a growth in
Social/community gaming
C
A Growth of Free-to-play Games
B Emergence of Real money games
C Growth of Social/Multiplayer games
Adoption of Esports & Game streaming portals
Access to affordable
data encouraged
gamers to explore,
download and play
more games on their
mobile phones.
COVID-19 lockdowns &
social distancing encouraged
the growth of users exploring
social & multiplayer games
including RMG
Snake(mobile), Mario, Dave,
Brian Lara Cricket
Age of Empire, FIFA,
Counter Strike, etc.
Angry Birds, Temple Run,
Candy Crush
(Online) Rummy, 3 Patti, Ludo King, MPL

11. 11
Gaming Market Structure
India’s Gaming Market Structure
PC & Console Games Mobile-based Games Esports & Streaming
©RedSeer
Note(s): Game/Player examples are illustrative for respective categories; and follow no order or preference whatsoever.
Source(s): RedSeer Analysis.
India’s gaming market is segmented into three major categories:
Mobile games, PC & Console, and Esports & Streaming
Time to fun <20
secs, visually
simple, higher
churn.
Simple, easily
repeatable and
accessible
games.
Simple to start
with features
for long tail
retention.
Complex,
multi-faceted,
games for
enthusiast users.
Games played
with real money
based on skill or
chance.
Popular
multiplayer games
usually played
professionally.
Tournaments
run and attended
or broadcast by
media houses.
Viewing game
streams on
channels like
Twitch & Loco.
Hyper-casual Casual Mid Core Hard Core Real-Money (RMG) Competitive Gaming Spectatorship Game Streaming
Soap Cutting, Crowd City,
HelixJump etc.
LudoKing, CandyCrush,
AngryBirds
Battlegrounds Mobile India,
Free Fire, Mobile.
Genshin Impact, DOTA,
League of Legends Online Poker, Rummy, TeenPatti, & Fantasy sports. Tournament & competitions Twitch, Loco, Youtube

12. 12
AGENDA 1. Gaming in India: An Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment enabling growth in Gaming
6. Appendix
©RedSeer

13. 13
©RedSeer
A
B
C
D
E
F
Gamers in India
In Millions, 2018-2025P
Structural Drivers
Note (s): “Gamer” is someone who has played at least 1 digital game in the last 1 month. ^ P = Projected
Source(s): RedSeer IP & Analysis.
With 400 Mn gamers in 2020, India’s gaming market is the world’s 2nd largest by volume;
and is expected to house ~700 Mn gamers in next 5 years
Growth of internet users
India has seen an exponential growth in the number of internet
users over the last few years
Increase in smartphone penetration
Fueled by the availability of low-cost smartphones, the smartphone
penetration also increased.
High data consumption
Usage of data has risen recently driven by the reduction in data tariff
over the years.
Technological innovations
Several OEM & supply side advancements have boosted the usage
of smartphones, apps & games
COVID-19 lockdown
Govt. imposed Covid lockdown accelerated the organic growth of
digital games by boosting downloads by 50%
Emergence of vernacular internet & games
“Indian”-ization of games with introduction of vernacular language
options has expanded the user base
2018 2020 2021P^ 2025P^
250
400
450
700
+11%
+150
COVID Lockdown accelerated
the organic growth of users

14. 14
©RedSeer
Over the past 5 years, the number of internet users in India accelerated significantly
Internet Users Mobile Internet Users
India’s internet users grew ~15%
during the past one year; with a
strong growth from rural areas
# of internet users (Mn); CY2005-25
Mobile Internet Users (% internet user)
Internet Subscribers in India
50% 82%
201
24
441 445
515
634 688
882
96% 89% 92% 94% 95% 98%
CY05 CY06
48 80
278
323
368
460
500
560
~680
~750
~950
CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY25
100
80
60
40
20
0
Desktop Internet
Internet enabled 2G phones
Low cost 3G enabled smart phones
Jio - Affordable 4G LTE
COVID Lockdown-led boost
Key Drivers of Adoption
A
Note(s): Personal electronics are shared & also have dual sim- slots, which results in identical number of mobile & internet users.
Source(s): RedSeer Analysis, TRAI, Datareportal.

15. 15
©RedSeer
~ 38% India’s population owned a smartphone in 2020
that can access mobile games from app stores.
OEMs are now targeting sub-USD100 users and the
average cost of smartphones is reducing, which has led to
the increased penetration.
Longer replacement cycles result in higher
retained/ownership period of phone. Better quality,
affordable phones have increased the average period of
ownership from 12-16 months to 16-20 months in India
between 2015 & 2020.
Note(s): P = Predicted
Source(s): RedSeer IP & Analysis, Secondary Research.
Moreover, the number of smartphone users in India has increased to over 500 Mn;
driven by strong demand from Tier-2+ cities and increasing affordability of high-quality smartphones
B
300 Mn
380 Mn
480 Mn
500 Mn
600 Mn
880 Mn
2016 2017 2019 2020 2021P 2025P
# of Smartphones, % of Population, CY16-25P
Smartphone Penetration in India
Highlights
CAGR ~40%
Average selling price of
smartphones and increased
adoption in rural and
vernacular users has boosted
the smartphone penetration

16. 16
©RedSeer
Note(s): 1. Time spent active consuming media, surfing or playing games (Active screen time)
Source(s): RedSeer Analysis, TRAI & DataReportal Secondary Reports
India has the world’s cheapest data tariffs resulting in increased data consumption
per unique connection; in-turn improving access to games and media
USD/GB GB/month
C
0.4
3.24
$1.08
$1.4 $8 $0.6
0.2
0.1 0.1 0.1 0 0.1
1.1
4.1
7.6
9.8
11.7
13.5
25
2015 2016
3H
3H
Boost due to Internet Affordability
(Jio-launch) (Lockdown-led restrictions)
Change in User Behaviour Rural Penetration
3.5H 5H 6H
4H 7H 8-10H
2017 2018 2019 2020 2021 2025
Avg. Daily
Time spent on
Internet1
Cheapest Data
Tariff in the world
Rapid Growth in Active
consumption of internet,
as seen by time spent
USD per GB | GB/month; 2015-2025 P
Average Data Consumption & Tariff
After the launch of Jio in 2016, India consistently had lowest data-tariffs in the world, enabling data consumption to become 4X within a year.
Currently, the data consumption is at 13.5 GB/month. As rural penetration grows, the average monthly data consumption is expected to almost double by 2025.

17. 17
©RedSeer Source(s): RedSeer Analysis, Secondary Research
In parallel, India has emerged as the fastest growing gaming market in the world
in terms of growth in new paying users (NPUs); now at over 50%
C.1
Digital transactions in India have grown at a
tremendous 50% CAGR in last 5 years (by volume of
transactions).
This enables and permits for strong monetisation
amongst Gamers on RMG, In-app Purchases etc. on
gaming platforms
Multiple platforms observed strong organic growth of
users; especially during the lockdown months of
2020.
The past year also saw a jump in monetization
conversions, as New Paying Users in gaming grew
from ~40% in FY20 to ~50% FY21.
FY2017 FY2018 FY2019 FY2020 FY2021
10
20
31
55
45
Number of transactions, In Bn.
New Users & First Time Payers on Mobile Games
Digital Transactions in India
+50%
First Time Paid User
in FY2020
(YoY Growth)
First Time Paid User
during FY2021
(YoY Growth)
+40%
+50%

18. 18
©RedSeer
Tech innovations driving growth
Better
hardware
OEM focus
on Gaming
Smartphone
Internet
Penetration
Source(s): RedSeer Research & Analysis
Technological innovations from the supply-side are supporting continuous and
healthy growth for the budding gaming sector.
Higher RAM & better processing power in phones allowing better graphics.
Storage capacity of mobiles have enabled users to store larger, complex
games, encouraging developers to build games with better graphics.
Modern screen technologies allows a superior experience and longer
screen time even on phone.
Companies like Asus, Xiaomi, Nubia have launched gaming-specific
smartphones with high refresh rate screens, game modes, triggers, etc. to
cater the growing demand of mobile gaming
Game-focused accessories : A new accessory market is emerged with the
growing popularity of mobile gaming
Mobile data prices in India have consistently been low; leading to better
access, thereby more game downloads and playing ability.
With the introduction of 4G, mobile internet speed have increased from ~3
Mbps in 2015 to ~18 Mbps in 2021.
<10k 10k-20k 20k-25k >25k
62%
22%
10%
6%
2015 2021
3.5
0.1
D
Low cost smartphones with
high specs
Smartphone split by Price Buckets (INR)
% of smartphones, CY20
Gaming-specific smartphones & accessories
Internet Speed ~3 MBPS ~18 MBPS
Data cost per GB and Internet Speed in India

19. 19
©RedSeer
Game downloads in India
2020-21; Indexed to 100
Segment
Casual Gaming
5X increase registered in the In-app purchases (IAP). Inactive users returned to platforms organically
Casual games with social gaming feature performed better than games that didn’t have the feature
India saw a spike in adoption and growth in the social games; especially during the COVID lockdowns
Friends and family took to social gaming to maintain social connections
The segment saw up 2X increase in userbase (a considerable increase in new users came in from Northern India)
Increase in number of tournaments with a large growth from Tier 2+ cities
Daily revenue increased to over 1.8X at its peak.
Specific games in Hard core & Midcore games grew significantly, but the sector was relatively lower compared to the other segments
Midcore and
Hardcore
Real Money Games
Social Gaming
Popularity1
Medium
Low
High
Very High
Observations
Note(s): 1. Relative Popularity based on customer interaction & usage figures for the game segments
Source(s): RedSeer Analysis & Secondary Research
The nationwide Covid lockdowns led to a jump in gamers;
and while all gaming segments benefitted, social games saw the strongest growth.
E
0
50
100
150
200
Feb
‘20
Jan
‘20
Mar
‘20
Apr
‘20
May
‘20
July
‘20
June
‘20
Aug
‘20
Sep
‘20
Oct
‘20
Nov
‘20
Dec
‘20
Jan
‘21
Feb
‘21
Mar
‘21
Apr
‘21
May
‘21
June
‘21
July
‘21
+51%
Lockdown 1 Lockdown 2
Sudden jump in downloads;
with onset of lockdowns
Downloads plateau-ed
and returning to baseline
post the lockdowns
Despite COVID led surge in
downloads and market
corrections, monthly game
downloads have increased
by ~50% in the past 1 year

20. 20
©RedSeer
Drivers of Growth
How likely would you play
a game if the central theme or
character is from Indian themes /
mythology / celebrities?
N = 2180
Vernacular
Offerings
Current internet growth driven by new rural users in India at 13% (vs 4% urban growth) that prefer vernacular content
Monetizable vernacular user base is estimated at ~400 Mn (by 2023)
Streaming of esports tournaments in Hindi is growing in popularity.
In 2020, PUBG tournament’s Hindi stream peaked at 449K viewers, highest in India (PMWL 2020)
Further, introduction of vernacular languages and Indian themes on various apps and games
are expanding the addressable user base to non-English speaking clusters.
F
Source(s): RedSeer Research & Analysis
Indifferent
Likely
Highly Likely
Unlikely
Highly Unlikely
~ 60% of people would like
to play a game with
Indian themes.
Overall Metro
(N=834)
Tier 1
(N=644)
Tier 2+
(N=702)
8%
52%
18%
10%
10%
13%
45%
20%
12%
8%
6%
49%
17%
11%
14%
7%
57%
18%
8%
8%

21. 21
©RedSeer
“India-first content” focused games
Emergence of
“India-first content”
focused games
Source(s): RedSeer Research & Analysis
As penetration for gaming is increasing beyond Metro cities and towards mid-to low-income individuals
i.e. “audience of the future”, preference for games with “India-first content” are increasing
due to “relevance and familiarity”
Multiple gaming studios have emerged and are building “India-first content” to tap the growing opportunity
Case-study: Emergence of Midcore, “India-first” culturally relevant games.
F.1
A new generation of studios
are developing game
adaptation of popular Indian
mythologies or popular
domestic sports with midcore,
social gameplay. These titles
are targeting increasingly
sophisticated Indian gamers
and are build to monetise
primarily via IAPs versus ads.
Market
Indicators
Leading
Studio
How likely would you play
a game if the central theme or
character is from Indian themes /
mythology / celebrities?
N = 2180
Will not play
Least likely
Less likely
Indifferent
Likely
Very likely
Indian Themes Mythology Celebrities
53
6%
3%
9%
19%
53%
17%
53
6%
3%
10%
8%
54%
17%
53
7%
4%
9%
7%
53%
18%

22. 22
©RedSeer
India Gamers Funnel
Millions of Users, CY20 – CY 25F
Note(s): % refer to share of immediately higher level
Source(s): RedSeer Analysis
# of Gamers
CAGR 16%
Driven by multiple structural drivers, we expect the gamer base to expand to ~700 Mn by 2025,
with a strong increase in paid gamers as a proportion of the total user base.
Access to Internet
Total population
with access to internet
Mobile Internet Users
Access to Mobile data packs
Smart Phone Users
Uses a Smartphone/Tablet
Gamers
Users who play atleast
one game
Playing Gamers
Users who have paid for a
digital game or In-app
purchases
CY20 CY21 CY25
675 100%
94-95%
75-78%
80%
20%
100%
96%
87-90%
70-75%
21-23%
100%
98%
95-97%
75-80%
30-33%
635
500
400
~80
-~950
~882
~860
~700
~234
720
689
600
~450
~96

23. 23
©RedSeer
AGENDA 1. Gaming in India: An Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment enabling growth in Gaming
6. Appendix

24. Pre-2019, the gaming sector was at an early stage & was dominated by international publishers and developers.
RMG will be expected to contribute a significant source of revenue with growing expectation of regulatory clarity.
IAPs are projected to grow ~40% by FY26 with the rise of paying users across casual and core genres
~$120 Mn revenue from ads is currently booked outside of India in addition to the ad revenue shown for 2021.
A Mobile Games
Most prevalent and rapidly rising mode of playing digital
games, especially for casual & real-money games.
B PC & Console
Developing a niche amongst serious gamers for mid &
hard-core games.
C Esports
Newest format of Digital gaming. Rapidly
gaining popularity, especially amongst young
and serious gamers
24
©RedSeer
Gaming in India - by Revenue Streams
2019-2026P, USD Bn
Indian Gaming Ecosystem: Deep-Dive
Source(s): RedSeer Analysis, Secondary research
India’s gaming market is estimated at $2.2 Bn in FY2021 and is projected to become $7 Bn
in next 5 years, with in-app purchases (IAP) being the fastest growing segment
CAGR ‘21-’26
~20%
~30%
~40%
$~0.8 Bn $~1.8 Bn $~2.2 Bn $~7 Bn
(27%)
(17%)
(26%)
(15%)
(31%)
(53%)
(11%)
Ad Revenue
In App
Purchases
(IAP)
RMG
Others
(54%)
~0.3
~0.5
~0.9
25-30%
~0.1
~0.3
~0.6
~1.2
~0.1
~0.7
~2.1
~3.7
~0.3
FY19 FY20 FY21 FY26P

25. 25
©RedSeer
Gaming Segments
Description and profile
Hyper-casual
Casual
Core
Games
Real Money
Games (RMG)
Esports &
Streaming
Mid-core
Hard-core
Description
Characteristics
Learning curve Difficulty Level Session Time Example
Source(s): RedSeer Analysis
The market constitutes of 6 segments based on their key characteristics
– learning curve, session time and difficulty level.
Simple mechanics which are very easy to pick up.
Driven by multiple, very-short session times.
Helix Jump, Ball Blast, Baseball Boy,
Car Merger, High Heels!
Hero Wars, Envoy-The King
returns, Carrom Pool, 8 ball Pool,
Ludo King, Yalla Ludo,
Genshin Impact, Lord’s Mobile,
Top War, Clash of Clans, Art of
War, BGMI, Call Of Duty.
Rise of Empires, FIFA Soccer,
League of Legends
RummyCircle,
Dream11, Adda52.
Loco, Twitch,
YouTube Gaming, Rooter etc.
Simple game mechanics and rules, easily picked
up. Better graphics and gameplay than
hyper-casual games.
Usually features a multi-player experience and
revolves around resource management skills.
Good graphics & details make it engaging.
Complex gameplan, mechanics and storyline
providing a very high engagement by gamers.
Usually played multiplayer.
Games related to poker, rummy, casino,
cards, and any other which involves real
money when playing.
Live streaming of gaming tournaments
& viewership.
Flat Negligible
Very-Short
(2 min)
Short
(~5 min)
Medium
(10-15 min)
Long
(>15 min)
Long
(>15 min)
Negligible
Medium to
High
Medium to
High
Low to
Medium
Gentle
Gentle
Steep
Skill-based
N/A N/A N/A

26. 26
©RedSeer Source(s): RedSeer Survey & Analysis
The market is dominated by RMG, with Esports, Casual and Hyper-casual
demonstrating the fastest growth
CAGR ‘21-’26
25-30%
~10%
40-45%
30-35%
25-30%
$~0.8 Bn $~1.8 Bn $~2.2 Bn $~7 Bn
RMG
Mid & Hardcore
Casual &
Hyper-casual
PC & Console
Esports
52%
19%
24%
50%
19%
27%
1%
FY19 FY20 FY21 FY26P
72%
49%
12%
22%
8%
25%
7%
3%
1%
3%
2% 3%
Gaming in India - by segments
FY19-FY26P, USD Bn.
Real Money Games have historically been the largest revenue source for India’s gaming. This segment is expected to grow at 25-30% CAGR with growing
expectation of regulatory clarity.
Non-RMG gaming segments are expected to grow faster, driven by growth in In-app purchases, subscriptions and virtual gifting.
Esports & streaming is a nascent market but is witnessing strong adoption in the market. It is expected to grow at ~40% over the next 5 year period.
25-30%

27. 27
©RedSeer Source(s): RedSeer Research & Analysis
~20% of gaming users in India are paid gamers, with RMG, Casual and Core games
the most popular amongst the paying user base
Do you pay for playing digital games?
N = 2180
Yes
No
RMG
Real Money
Gaming
Casual
Google Pay and PhonePe are the most popular means of payment for games
Subscriptions
Hardcore
Midcore
Virtual Gifting
and Tipping
In-App
Purchases
Hyper-casual
Social Games
Esports
41%
33%
14%
1%
1%
1%
22%
72%
56%
15%
17%
% Respondents, N = 485
What type of games do you pay for?
% Respondents, N = 485
What type of feature do you pay for?
78%
22%

28. 25%
25%
50%
28
©RedSeer
The average gamer spends an average of ₹107 ($1.5) per month on games; with the average RMG gamer
spending ₹250 ($3.5) per month. Our survey indicates that users are willing to pay as high
as ₹ 500 ($7) to ₹ 1000 ($14) per month on midcore and hardcore
How much money do you spend playing games in a month?
Monthly Average
Spend (N= 2180)
Overall Hyper-Casual Casual Midcore Hardcore RMG
53
4%
6%
17%
39%
26%
5%
53
7%
5%
22%
38%
26%
1%
INR 107
$1.5 $0.1 $0.6 $0.7 $2.4 $3.5
INR 10 INR 46 INR 54 INR 176 INR 249
INR 100-200
INR 50
< INR 50
INR 200-500
INR 500-1000
INR 1000+
53
6%
3%
12%
53%
18%
7%
53
1%
1%
13%
53%
27%
4%
31%
1%
9%
30%
20%
8%
Notes: Monthly Average Spend is the average spend across the total gamer sample
Source(s): RedSeer Survey & Analysis
0%
0%
0%

29. 29
©RedSeer
India’s mobile gamers are primarily young males; Casual & Hyper-casual formats
are witnessing growing adoption amongst women
A
Source(s): RedSeer Research & Analysis.
Overall Hyper-
casual
Casual Midcore RMG
N=2,180 N=97 N=1,476 N=694 N=375
Female
Male
77%
22%
N varies by segment
Demographic Trends – Split by Gender
Split by Age
62%
37%
71%
28%
87%
12%
84%
15%
Overall Hyper-
casual
Casual Midcore RMG
N=2,180 N=97 N=1,476 N=694 N=375
<18
18-24
25-34
35+
42%
1%
24%
32%
44%
3%
21%
30%
42%
1%
26%
30%
42%
1%
14%
30%
51%
32%
16%
Split by City Tier
Overall Hyper-
casual
Casual Midcore RMG
N=2,180 N=97 N=1,476 N=694 N=375
North
South
East
West
24%
23%
21%
30%
6%
22%
26%
44%
26%
22%
19%
31%
27%
21%
23%
28%
16%
25%
28%
29%
Split by Region
Overall Hyper-
casual
Casual Midcore RMG
N=2,180 N=97 N=1,476 N=694 N=375
Metro
Tier 1
Tier 2+
29%
32%
38%
22%
28%
48%
30%
28%
40%
33%
32%
34%
22%
23%
53%
Mobile PC & Console Esports & Streaming

30. 30
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Across mobile gaming segments, India’s gamers are active users of social media, messaging
and online shopping – these channels are the primary sources for gamer acquisition.
A
Source(s): RedSeer Analysis, Primary research
Mobile PC & Console Esports & Streaming
Categories
(In decreasing order of
overall usage)
(N=97) (N=1476) (N=694) (N=375)
Hyper Casual Casual Midcore RMG
Social Media
Messaging
Online
Shopping
Video
Banking and
Wallet
Audio
Shortform
content
News
N varies by segment
Gamers overlap to other Digital Media Consumption
86%
82%
72%
70%
63%
41%
39%
78%
74%
71%
63%
64%
53%
39%
38%
67%
72%
71%
66%
65%
61%
48%
48%
69%
56%
62%
60%
56%
49%
26%
33%
59%
1
2
3
1
2
3
1
2
3
1
2
3

31. 31
©RedSeer
Hyper-casual games offer a quick and easy means to pass time and have become
a popular entry point for India’s first time mobile gamers.
Hyper-casual games are easy to learn, and encourage players to come back for multiple short-durations.
These games typically focus on a single task/activity, like running, parking a car or dunking a basketball etc.
Top Indian Hyper-casual Genres
Avg. Weekly Hours Spent Playing 1.8 Hrs
Users who increased gaming in last 12 months
Users who will increase gaming in next 12 months
20%
14%
Arcade Puzzle
Helix Jump
Helix Jump
JoinClash 3d
SuperSonic Studios
Rescue Cut
- Rope Puzzle
MarkApp
Crossy Road
Hipster Whale
Worms Zone.io
Azur Interactive
Top Hyper-casual Games
Characteristics of Hyper-casual gaming
A
Mobile Hyper-Casual Casual Core RMG
Note(s): Player & game examples are for reference and not in any order or preference, Key Usage Characteristics refers to average metric figures for the Top 100 players in Q1-2021
Data on weekly hours spent playing, increased gameplay, and future outlook on gameplay based on survey data. Source(s): RedSeer Analysis, Primary & Secondary research.
Key Usage Characteristics
Typical # of Downloads for Top 100
~ 6 Mn Downloads
Typical # of MAU for Top 100
~ 28 Mn

32. 32
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India’s Hyper-causal gamers play to relax and past time; they discover new games through
recommendations coming from friends and advertisements.
A
Mobile Hyper-Casual Casual Core RMG
Source(s): RedSeer Analysis, Primary Survey & research.
N = 97
Source of discovery of hyper-casual games
N = 97
Motivation to play hyper-casual games
Friends/Family
recommendations
Playstore/Appstore
recommendations
In App
advertisements
Advertisement other
than apps
Game reviews from
various media
Influencers/
Celebrities
76%
54%
26%
22%
11%
9%
Relaxation and
Destressing
Time kill/
distraction
Self-expression/
creativity
Socialise with
other gamers/ like-
minded people
Competition /
thrill-seekings
Personal growth
To make money
95%
68%
45%
29%
28%
19%
11%

33. 33
©RedSeer
India’s casual gaming sector was previously dominated by globally successful titles,
although culturally resonant domestic games continue to grow.
Casual games typically have simple game mechanics and rules, and can be picked up quickly. Audiences for casual games
also spend less time playing than mid-core and hardcore audiences- playing more spontaneously or irregularly.
A
Mobile Hyper-Casual Casual Core RMG
Note(s): Player & game examples are for reference and not in any order or preference, Key Usage Characteristics refers to average metric figures for the Top 100 players in Q1-2021
Data on weekly hours spent playing, increased gameplay, and future outlook on gameplay based on survey data. Source(s): RedSeer Analysis, Primary & Secondary research.
Top Indian Casual Genres
Candy Crush
Activision Blizzard
Ludo King
Gametion MiniClip
Carrom Pool
Action
RPG Simulation Sports Trivia Word
Arcade Adventure Card Puzzle Racing
Temple Run
Imangi Studios
Subway Surfer
Top Casual Games
Avg. Weekly Hours Spent Playing 3.3 Hrs
Users who increased gaming in last 12 months
Users who will increase gaming in next 12 months
28%
16%
Characteristics of casual gaming
Key Usage Characteristics
Typical # of Downloads for Top 100
~ 7 Mn Downloads
Typical # of MAU for Top 100
~ 30 Mn

34. 34
©RedSeer
India’s casual gamers play to relax, but a large section seeks to socialize with other users
and enjoys the thrill these games provide.
Casual games typically have simple game mechanics and rules, and can be picked up quickly. Audiences for casual games
also spend less time playing than mid-core and hardcore audiences- playing more spontaneously or irregularly.
A
Mobile Hyper-Casual Casual Core RMG
N = 97
Source of discovery of hyper-casual games
N = 97
Motivation to play hyper-casual games
Friends/Family
recommendations
Playstore/Appstore
recommendations
In App
advertisements
Advertisement other
than apps
Game reviews from
various media
Influencers/
Celebrities
71%
47%
24%
24%
16%
15%
Relaxation and
Destressing
Time kill/
distraction
Self-expression/
creativity
Socialise with
other gamers/ like-
minded people
Competition /
thrill-seekings
Personal growth
To make money
93%
57%
42%
39%
29%
18%
16%
Higher % of gamers
as compared to hyper-
casual games who seek
to socialise & compete
Source(s): RedSeer Analysis, Primary survey & research.

35. 35
©RedSeer
India’s midcore gaming sector is forecasted to see the biggest gains,
as hyper-casual and casual gamers graduate to more immersive social formats.
Mid-core games exhibit a significant considerable learning curve, game loops, and detailed graphics. They usually feature a multi-player experience
and resource management skills which means that session durations are longer and there are monetization opportunities via in-app purchases.
A
Mobile Hyper-Casual Casual RMG
Note(s): Player & game examples are for reference and not in any order or preference, Data on weekly hours spent playing, increased gameplay, average spends, and future outlook on gameplay based on survey data.
Source(s): RedSeer Analysis, Primary & Secondary research.
Mid-Core/Core
Top Indian Mid/Hard Core Genres
Avg. Weekly Hours Spent Playing 3.5 Hrs
Users who increased gaming in last 12 months
Users who will increase gaming in next 12 months
37%
25%
Genshin Impact
MiHoyo
Clash of Clans
SuperCell
FreeFire
Garena
Battlegrounds
Mobile India
Krafton
Lords Mobile
IGG.COM
Top Hyper-casual Games
Characteristics of Hyper-casual gaming
Monthly Average Spends on Midcore ~$0.7
Monthly Average Spends on Hardcore ~$2.4
Role Playing Games
(RPG)
Racing
Strategy Action

36. 36
©RedSeer
India’s midcore gamers prefer socializing with other people
and hence also rely on reviews for finding new games.
A
Mobile Hyper-Casual Casual Mid-Core/Core RMG
Source(s): RedSeer Analysis, Primary survey & research.
N = 97
Source of discovery of hyper-casual games
N = 97
Motivation to play hyper-casual games
Friends/Family
recommendations
Playstore/Appstore
recommendations
In App
advertisements
Advertisement other
than apps
Game reviews from
various media
Influencers/
Celebrities
72%
45%
33%
22%
22%
19%
Relaxation and
Destressing
Time kill/
distraction
Self-expression/
creativity
Socialise with
other gamers/ like-
minded people
Competition /
thrill-seekings
Personal growth
To make money
91%
53%
44%
40%
37%
20%
12%
Gamers might indicate
an unmet need of “social
gaming” which is recently
growing
Indicates a preference &
need for research before
starting a new game

37. 37
©RedSeer
Real-money games are strong cash-driven recreational channels for grown-ups
A
Mobile Hyper-Casual Casual Core RMG
Note(s): Player & game examples are for reference and not in any order or preference, Key Usage Characteristic refers to average metric figures for the Top 100 players in Q1-2021
Data on weekly hours spent playing, increased gameplay, and future outlook on gameplay based on survey data. MAPU: Monthly active paying users
Source(s): RedSeer Analysis, Primary & Secondary research.
Includes all skill-based games that involvement of real money such as fantasy, rummy, poker, and competitive gaming platforms.
Top Indian RMG Genres
Dream11 Mobile
Premier League
Games 24x7 Winzo Adda52
Top RMG Players
Casino
Card Fantasy
Avg. Weekly Hours Spent Playing 3.9 Hrs
Users who increased gaming in last 12 months
Users who will increase gaming in next 12 months
37%
27%
Characteristics of RMG
Key Usage Characteristics
Typical # of MAPU for Top 10 Apps
(monthly average paying users)
~ 300 - 500 K

38. 38
©RedSeer
Mobile Hyper-Casual Casual Core RMG
Indian RMG users are non-traditional gamers relying on friends and ads to choose their new games;
Making money is one of the key motivation to play
A
Source(s): RedSeer Analysis, Primary survey & research.
N = 375
Source of discovery of RMG games
N = 375
Attraction to play RMG games
Friends/Family
recommendations
Playstore/Appstore
recommendations
Game reviews
from various media
Influencers/
Celebrities
In-App
Advertisements
Advertisement
other than apps
59%
51%
42%
37%
35%
22%
Relaxation and
Destressing
To make money
Self-expression/
creativity
Socialise with
other gamers/ like-
minded people
Time kill/
Distraction
Personal growth
Competition/
Thrill seeking
86%
70%
58%
35%
26%
14%
10%
Gamers seek to earn money
but refrain from competition
as this is usually their
past-time activity

39. Social distancing in COVID lockdown led individuals and gamers to
remain confined to their households and need for social connection led
to rapid adoption of social games.
Adoption of games (e.g. Ludo, Teen Patti and Poker) with social feature
skyrocketed during COVID lockdown.
Social gaming features continue to be a key driver of retention and new
usage for domestic, regional language gamers, including female
audiences (e.g. Eloelo).
Livestreaming of games provide gamers a unique experience of watching
their favourite game played by experts.
There is an emerging segment of gamers that enjoy the "vicarious" offering
of live game streaming. Indian gamers increasingly consume live streaming
content offered by their favorite influencers instead of traditional media.
Commentary by live streamers are another key driver for growth as
streamers provides reviews, commentary, humor, giveaways, and game tips.
39
©RedSeer
Emerging themes across gaming in India - Social Gaming and Live Game Streaming
Source(s): RedSeer Research & Analysis.
Mobile PC & Console Esports & Streaming
Social Gaming and Game Livestreaming
Key
Games/
Platforms
Games going “SOCIAL” “Livestreaming” Games

40. 40
©RedSeer
PC & Console based games serve a premium and growing set of users in India who value
high-quality gameplay, graphics and fidelity
Mobile PC & Console Esports & Streaming
Consoles based gaming market in India is dominated by Sony and XBOX
accounting for 90-95% of the market.
Gaming consoles are still a small market and is mostly restricted to
Metros & Tier 1 cities.
The PC and console gaming market is projected to grow at 10% YoY
B
PC & Console Games includes all video games played on computers (laptops, desktops etc.) and
dedicated gaming consoles (PlayStations, Xbox, Switch etc.)
Top PC & Console Genres
Action
RPG Simulation Sports Trivia Word
Arcade Adventure Card Puzzle Racing
Prominent PC &Consoles Prominent PC & Console Games
Gaming Consoles in India (Market Share)
Note(s): Player & game examples are for reference and not in any order or preference
Source(s): RedSeer Analysis, Primary & Secondary research.
Playstation
Xbox
Nintendo
Other
FY19 FY19 FY19 FY19 FY19
74.25
25.1
82.76
16.42
58.52
10.65
78.33
21.45

41. Prominent PC &Consoles Prominent Esports Teams/Players
41
©RedSeer
PC & Console based games serve a premium and growing set of users in India who value
high-quality gameplay, graphics and fidelity
Mobile PC & Console Esports & Streaming
C
Esports includes all viewing, streaming and professionally competing in popular games.
Announced & Predicted Prize Money from Esport Tournaments
USD Mn
Prize Pool (USD)
Note(s): Player examples are for reference and not in any order or preference
Source(s): RedSeer Analysis, Primary & Secondary research
ESL and Nodwin- One Mumbai
Battlegrounds Mobile India Series 2021
Free Fire India Championship
ESL India Premiership
Free Fire India Championship
2021 Spring
DreamHack 2019
Free Fire India Championship
2020 Fall
300k
134k
100k
150k
103k
52k
68k
Prominent Esports Tournaments (India) Esports Prize Money
2017 2018 2019 2020 2021
0.2
0.5
1.1
14.3
3.6
4x growth
expected

42. 42
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Live game streaming is rapidly growing as a source of mainstream entertainment for Indian users.
Typical # of Subscribers for Top 10 ~ 10 Mn
Typical # of Viewership for Top 10 ~ 1 Mn
Mobile PC & Console Esports & Streaming
C
Game Streaming refers to the players recording or playing games live for others to view.
Channel
Total
Gaming
Ajay “Ajjubhai” 28.2 Mn 1.8 Mn Garena FreeFire,
Minecraft and GTA V
6.8 Mn
GTA V, Minecraft,
PUBG Mobile, Garen.
Ujjwal C. 20.8 Mn
Sahil R. 14.2 Mn 2.4 Mn
Garena Free Fire
MineCraft, Garena.
Dota 2, GTA V,
Apex Legends, PUBG & BGMI
Resident Evil Village,
Cyberpunk, etc.
1.1 Mn
1.5 Mn
Lokesh Raj 12.7 Mn
Gyan Sujan 11.7 Mn
Amit Sharma 11.4 Mn 1.3 Mn
Adil Sawant 9.9 Mn 8.5 Mn
CarryMinati 9.8 Mn 854 k
Techno
Gamerz
A_S Gaming
Lokesh Gamer
Gyan Gaming
Desi Gamers
Dynamo Gaming
CarryisLive
& others like Soul, Mortal, MythPat , Tanmay Bhat etc.
Streamer Subscriber Avg. Viewership Games Streamed
Note(s): Examples are for reference and not in any order or preference unless specified, Top streamer characteristics are based on metrics for Sept 2021
Source(s): RedSeer Analysis, Secondary research
Popular Platforms
Key Streamer Characteristics
Youtube Loco Rooter Twitch
Prominent Streamers

43. 43
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Live game streamers operate like influencers on social media channels and their major revenue sources
are virtual tipping/ gifting, advertisements and sponsorships
Mobile PC & Console Esports & Streaming
C
Note(s): Share of revenue is indicative of a typical revenue split for a player at the sector-level
Source(s): RedSeer Analysis, Primary research.
Revenue Streams
Virtual Tipping /
Gifting
Ad/Media
Revenue
Brand
Sponsorships
Merchandise
Description Mechanism Advantages Disadvantages
Viewers can directly tip or
gift the streamer.
Tips feature on the
channel / Direct sales.
Brand recognition
Direct sale & revenue
Id of fan base.
Tipping and gifting behaviour in
the India market are still emerging
forms of monetisation
One-time payment only
Heavily driven by viewership and
can favour select influencers
Highly dependent on brand budgets, can
be subject to macro-economic fluctuations
.
Need strong relationships with brands, IP
holders and media agencies
N/A
Upfront and recurring monthly
payment dependent on
viewership and reach
Can be both upfront payments
and long-term contracts.
Brand recognition
Direct sale & revenue
Partnership/ Sponsorship
Direct Sales
Advertisement revenue is
a major source as these
streamers are able to
generate large audiences
& traffic on their channels.
Popular streamers
are sponsored to
feature specific
games or products.
Sale of team or game
merchandize to fans.

44. 44
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For non-RMG games, advertisements are a large source of revenue alongside in-app purchases. With an
increasing tendency to pay, in-app purchases are rapidly becoming a significant income source
Note(s): Share of revenue is indicative of a typical revenue split for a player at the sector-level
Source(s): RedSeer Analysis, Primary research.
Current Monetization Methods & Revenue Sources in Gaming.
Revenue Streams
In-App Purchases
Advertisement & Partnerships
Direct to Developer/
Publisher Revenue Sources
~5%
90-95%
~1% 80-95% 80-90% 10-25%
5-10%
5-10%
<1%
5-10%
5-10%
<1%
10-25%
20-30%
-
- - - -
90-95%
45-50%
50-55%
50-55%
50-55% 5-10%
5-20%
5-20%
70-80%
20% 45-50%
55-60%
10-20%
10-20%
35-40%
5-10%
~5%
-
-
-
-
-
-
Generally Nil
<1%
- -
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
Generally Nil
60-65%
60-70%
-
20-30%
20-30%
20-30%
<1%
-
Generally Nil
- -
-
-
-
Hyper-casual and Casual Mid-core/ Core Real Money Games PC & Consoles Esports Live streaming
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Player/feature upgrades, Ad-free versions, extra
lives & other Micro-transactions.
Season Passes & Downloadable Content.
"Loot boxes" and Special Gifts/Items boxes.
Advertising/Media Revenue
Games Purchases
Commission & Rake
Subscriptions
Tournament Entry Fees
Virtual Tipping
Donations to Developer
-
-
-
-
-
-
-
-
Merchandise
Sponsorships

45. 45
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AGENDA 1. Gaming in India: An Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment enabling growth in Gaming
6. Appendix

46. 46
©RedSeer
Technological innovations are democratising the game development and enhanced gameplay experience;
AI-ML solutions are easing issues faced by Game developers to ensure better performance of games,
improved user targeting and fraud detection
Note(s): Non-exhaustive feature. AI/ML usage is continuously evolving to utilize the large amount of user data generated.
Source(s): RedSeer Analysis, Primary research.
Game Personalization
User Monetization
Content Generative Tools
Fraud & Anomaly Detection
Building more engaging and detailed games by
Use of generative AI to build content
Analyze user likings and personalize games
- Using AI models to increase retention
Increase LTV & improve monetization etc.
Fraud & anomaly detection is a strong use-case with use of
Graph databases; which can help identify fake users,
account sharing and other such digressions.
Usually inbuilt in the game’s back-end, but new options of
managed services rely on AI and offer hosting on Cloud
AI & cloud service enable smoother server management &
load distribution for higher efficiency and stability of games.
Artificial Intelligence (AI) & Machine Learning (ML) in Game Management.
Game Management
Non Technical
Aspects
Infrastructure
Management
Managing various components
and the back-end of the game.
Ensuring a smooth experience for
players during a game/play
Session Management
& Matchmaking
Functions and Tasks Use of AI/ML Application of AI & ML
Deploying the game servers
on virtual machines.
Containerized game servers
on “Kubernetes”
Choosing a completely
managed service for hosting
Game backend In-built
Or managed suites
(continuous integration and
continuous deployment )

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AGENDA 1. Gaming in India: An Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment enabling growth in Gaming
6. Appendix

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Gaming companies in India have seen a 500% increase in funding received during the last 4 years
Funding in Digital gaming in India
USD Mn
Passive Phase
# of gaming
companies
Sudden Surge
25-30 275 500+
2015 2016 2017 2018 2019 2020 2021
15
4.35
34
135
415
820
156
+426%
The sector has attracted $800 Mn in investments in the last 6 months; with approximately $1.3 Bn raised over the last 18 months.
Number of India gaming companies has grown from 25 in 2015 to 500+ gaming companies in 2021; indicating strong potential in the sector.
Note(s): Investments till September 2021. Figures include only publicly disclosed funding.
Source(s): Crunchbase Data, Industry Reports, RedSeer Analysis.

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Private and public market funding led to emergence of large gaming players in India valued >$1Bn
Indian Gaming Unicorns
Public-led, Indian megahouse for games
with active M&A and diversification.
Founded in 2000, a leading diversified
gaming and sports media platform with
offerings across casual gaming, Esports,
RMG, and early-stage learning.
Market Cap1
-
Total Funding -
Key Investors -
~ $ 1.2 Bn
$ 146 Mn
Westbridge, IIFL, ESL
Gaming, Sequoia.
Valuation -
Total Funding -
Key Investors -
$ 5 Bn
$ 785 Mn
Falcon Edge, Tiger
Global, Tencent, Kalaari.
Valuation -
Total Funding -
Key Investors -
$ 2.3 Bn
$ 389 Mn
Sequoia Capital, Times
Internet, MDI Ventures.
Founded in 2008, India’s biggest
multi-sport fantasy gaming platform
with over 100 Mn + users playing.
Founded in 2018, its an online mobile gaming
and Esports platform offering 50+ titles. It has
been leading the Esports push in India while
also providing casual, fantasy, & RMG.
Rely on love for cricket & traditional
sports via fantasy & RMG games.
MPL is driving the Esports segment in
India with its platform-based offering.
Note(s): Market Capital, Funding and valuation is taken as on October 13, 2021 after closing of markets; 1 INR = 70 USD,
Source(s): RedSeer Analysis.

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The market has seen the successful public listing of Nazara Technologies,
which was one of India’s first gaming companies.
Source(s): RedSeer Secondary Research, Primary Interviews
Nazara Technologies IPO Snapshot
In USD Mn, FY 2016 - 20
Revenue Growth – Nazara Technologies
In USD Mn, FY 2016 - 20
Existing Investor Exit Multiples
Investor Gain Multiple
Gain Multiple for
Exiting Investors
IPO Oversubscription
2nd Largest in 2021
Premium on issue price
on opening
1.5x to 2.7x 174.46x ~ 80%
2016 2017 2018 2019 2020
30
29
26
37
27
Westbridge Capital (Pre-IPO Exit)
IIFL Fund
Good Game Investment
Seedfund 2 International
Porush Jain, Azimuth Inv, SeedFund2India
45x
2x
2.7x
1.5x
1.5x
Being the first gaming company in India to
launch an IPO, Nazara Technologies saw huge
demand and captured a scarcity premium by
investors looking to participate in a fast
growing market.
With the IPO funds, Nazara aims to continue
investing and acquiring companies with high
synergy with its existing portfolio. These
synergy acquisitions has made the stock more
valuable for the investors.
The IPO saw huge interest from foreign and
domestic investors alike, with major anchor
investors being Goldman Sachs, Fidelity
Investments, Nomura, Kotak Securities, SBI
Mutual Funds, etc.
IPO Insights

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AGENDA 1. Gaming in India: An Introduction
2. Dynamics and Opportunity
3. Market, Business Model and Segments Deep-dive
4. Technology Disrupting Gaming
5. Investment enabling growth in Gaming
6. Appendix

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©RedSeer
Currency conversion 1 USD = INR 70
CY
FY
Metro Cities
Tier 1 cities
Tier 2+ cities
Rural Areas
Gaming
Gamer
Paying Gamers
Hyper-casual games
Casual games
Mid Core
Hard Core
RMG
Esports
Streaming
Streamer
Calendar Year (January to December)
Financial Year (April to March)
Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Kolkata, Pune, and Ahmedabad (8 cities)
Non-metro cities with population more than 1 Mn (20 cities)
Non-metro cities with population less than 1 Mn (4400+ cities)
Population less than 10,000
Digital Gaming (including PC/Console and Mobile games)
A person who has the available resources (internet, mobile, PC/Laptop and/or Gaming console) and has independently played a digital game of any kind
A Gamer who has explicitly paid for a game, game feature or any other direct form while playing (includes all In-app purchases & real-money gaming transactions
Single-core mechanic, easy to pick-up, difficult to master; and uniformly challenging games e.g.; FlappyBird
Games with engaging but simple mechanics and easy-to-learn rules. Enhanced graphics and gameplay over hyper-casual games; e.g.; Angry Birds, Candy Crush
Games with detailed graphics and complex gameplay, often features a multi-player experience and revolves around resource management skills; e.g; Clash of Clans, Call_Of-Duty(Mobile)
Intense & complex gameplays, detailed simulation, mechanics and storyline providing a very high engagement for gamers, e.g.; Microsoft Flight Simulator, Genshin Impact etc.
Games related to casino, card or any involvement of real money or tokens against money like Dream11, Rummy Circle.
Competitive digital gaming and live streaming of gaming tournaments & viewership.
Live or recorded uploading of a game play (on Youtube, Twitch etc.); may also be called “Live-stream”
Individual person who uploads and/or plays the Live- stream.
Glossary of terms used in the document (1/2)
Keywords Definition / Terms / Acronyms

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OTT/ Video streaming Over-the-top media content and videos which can be view on demand; e.g.; Netflix.
Internet Subscribers
Mobile Internet User
Digital Transaction
In-app Purchases
Ad revenue
MAU
MAPU
ARPU
ARPPU
LTV
AI/ML
OEM
Lockdown
IP
OS
A person who has access to any form from internet; broadband or wireless.
A person who has access and uses non-cabled internet through mobile networks like 3G,4G etc.
Financial transactions done through various digital channels like GooglePay, PhonePe, etc.
Refers to purchases made by a user while playing or using an app for additional access, feature or any such activity.
Income earned by displaying paid advertisements on their app/website surrounding their internet-based content.
Monthly Active Users.
Monthly Active Paying Users.
Average Revenue Per User.
Average Revenue Per Paying User.
Lifetime Value : estimated total revenue that can be generated from a user during his/her lifespan as customer.
Artificial Intelligence / Machine Learning technologies.
Original Equipment Manufacturers.
Unless otherwise specified; it refers to the period of complete restriction of businesses and movement imposed by the Indian government during March-May 2020 and
Apr-May 2021 due to COVID pandemic.
Intellectual Property.
Operating System.
Glossary of terms used in the document (2/2)
Keywords Definition / Terms / Acronyms

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©RedSeer
About
RedSeer
RedSeer is a research and consulting firm founded in 2009. We are headquartered out of Bengaluru and have presence in
Delhi, Mumbai, Dubai, and Singapore additionally. Though we are focused on the consumer internet space in India, Southeast
Asia, and the Middle East, we have deep experience in overall retail as well. Our primary business activities include providing
research inputs (on market, consumers, other stakeholders) to corporations and funds, conducting due diligence for potential
investments, publishing thought leadership pieces, and helping corporate clients solve strategic problems.

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©RedSeer
Authors
Anil Kumar is the founder of Redseer Consulting. He has been part of engagements in Internet,
Private Equity, Retail CPG and Healthcare among others. He specializes in growth and
investment strategies. Anil is a believer of the data-driven approach in solving business
problems. His consulting approach leverages Data IP, sector expertise and the client’s core
hypotheses. He holds a B.Tech from IIT-Delhi.
He can be reached at anil@redseer.com
Mukesh Kumar is the engagement manager at RedSeer and has 7 years of experience in growth
strategy engagement across internet, gaming, education, healthcare, and consumer products
clients across India, MENA, and North America. He holds a B.Tech from IIT Delhi.
He can be reached at mukesh@redseer.com
Anil Kumar
Founder and CEO
Mukesh Kumar
Engagement Manager
Jaladhi Surati is a Senior Consultant at RedSeer; and has over 5 years of experience in strategy
& business consulting. He enables internet businesses in Gaming, eCommerce, FoodTech and
other Platform-businesses across India, South-East Asia and MENA regions. He holds a
Master’s degree in Business Administration from IIM Bangalore.
He can be reached at jaladhisurati@redseer.com
Jaladhi Surati
Senior Consultant
The authors would like to acknowledge the hardwork and support extended by Akshat Praneet, Muskaan Khetan and all others during the course of this report.

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©RedSeer
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