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

To maximize success in India, it is crucial to have a local presence. 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 country. According to Courtside Ventures partner Deepen Parikh, it is not necessary to have comprehensive knowledge of the Indian gaming market before investing. In fact, he suggested that a degree of naivety can be beneficial, citing his own experience investing in Indian games publisher Winzo. The partnership between Courtside and Winzo was established during the COVID-19 pandemic, with the deal being facilitated through video calls and the assistance of local accountants and law firms. Parikh emphasized the importance of being physically present in the market, stating that 'there is no replacement for being on the ground.' He noted that India is a diverse country with distinct regional characteristics, and that failing to understand these differences can result in missing significant opportunities. Play Ventures general partner Phylicia Koh made a similar point, highlighting the two primary categories of opportunities for video games in the Indian market. These include developing games in India for a global audience, which presents the same challenges as elsewhere, and creating games specifically for the Indian market, which is large, youthful, and offers unique opportunities. Koh emphasized that building a market-leading game in India from outside the country is unlikely to succeed, as it requires an intimate understanding of local consumer preferences, habits, and payment methods. A recent report by Lumikai, a venture capital fund, revealed that the Indian gaming market generated $3.8 billion in revenue in the last fiscal year and is projected to grow to $9.2 billion by the end of FY2029, with 514 million players. The market is shifting, with millions of players now spending money on free-to-play titles, particularly in the midcore segment. Parikh echoed this sentiment, noting that while the opportunity to monetize games in India is growing, it remains a challenging task that requires creativity. He emphasized the need to think differently about the Indian market, moving beyond the assumption that it is solely focused on volume and recognizing the importance of developing innovative monetization strategies. Andrea Yang, investment associate at Makers Fund, also highlighted the value of local presence, stating that research and data can only provide a limited understanding of the market. To truly comprehend the nuances of the Indian gaming market, it is essential to engage with local developers and players, and to be physically present in the country. Yang cited the example of cricket, a sport that is extremely popular in India, and noted that its significance cannot be fully understood without experiencing the local culture firsthand. The importance of being on the ground in India, particularly in such a complex and vast market, cannot be overstated.