Success in India's Gaming Market: The Importance of Local Presence

To achieve success in India, it is essential to have a local presence in the country. This was the central message conveyed by a panel of investors at the India Game Developers Conference in Hyderabad, where they discussed trends and opportunities in funding games ventures in the region. Deepen Parikh, a partner at Courtside Ventures, emphasized that it is not necessary to have extensive knowledge of the Indian gaming market before investing. In fact, he suggested that it is acceptable to be somewhat naive about the market, citing his own experience of investing in the Indian games publisher Winzo. The partnership between Courtside and Winzo was established in just a few months, despite the challenges posed by the COVID-19 pandemic. Parikh attributed the success of the partnership to the fact that Courtside was willing to engage with local businesses and adapt to the unique conditions of the Indian market. Phylicia Koh, general partner at Play Ventures, made a similar point, highlighting the importance of understanding the cultural nuances and consumer preferences of the Indian market. She noted that the opportunities for video games in India can be divided into two categories: making games for the global market or making games specifically for the Indian market. The Indian gaming market is characterized by its youth and diversity, with a significant population of players under the age of 30. However, the market also poses unique challenges, particularly with regards to monetization. Parikh emphasized that it is no longer possible to view India as a market where volume is the only consideration, and that developers must be creative in their approach to monetization. The release of Lumikai's annual report on the Indian gaming market highlighted the growth potential of the sector, with revenues projected to reach $9.2 billion by the end of FY2029. However, the report also noted that the market is becoming increasingly complex, with shifting player behaviors and preferences. Andrea Yang, investment associate at Makers Fund, emphasized the importance of local presence in understanding the nuances of the Indian market. She noted that while research and data can provide valuable insights, they are no substitute for direct engagement with local businesses and consumers. The example of cricket was cited as a case in point, with Yang highlighting the unique passion and enthusiasm for the sport in India. To truly understand the Indian market, it is essential to be present on the ground, engaging with local stakeholders and consumers to gain a deeper understanding of their needs and preferences.