Esports set for stellar growth

Bengaluru: Online gaming platforms, popularly known as esports, are likely to have another year of stellar growth in 2021 as more first-time users flock to these gaming platforms in the country.

Last year, esports received a major boost as lockdown measures announced to contain the Covid pandemic resulted in more people playing these virtual games. Though the fear of the pandemic is receding, experts are of the opinion that this year too will see sustaining last year's growth rates.

"With an ever-expanding market, the esports industry is getting competitive. With over 120 million online gamers at present esports industry is expected to increase up to Rs 118.8 billion in 2023. Pocket52 has witnessed an average growth of 20 per cent every month in the last financial year and we are all set for exponential growth even in the year 2021," Nitesh Salvi, Founder, and CEO at Pocket52, an esports company providing poker gaming platform.

Esports is an organised, multiplayer video game competition between players who play it individually or as teams. These games are also broadcast live for interested audiences, much like other sporting events.

According to a report by Maple Capital Advisors, the Indian gaming industry is currently valued at $930 million and is expected to grow at 41 per cent annually. The estimates suggest that the gaming industry in the country is likely to reach a valuation of $3.75 billion by 2024. Similarly, global consultancy firm KPMG projects that the audience for esports will be more than 130 million by 2025. The recent inclusion of esports at the upcoming Asian Games 2022 by the Olympic Council of Asia will

Consultancy KPMG estimates that the audience for esports will exceed 130 million by 2025. Recently the Olympic Council of Asia (OCA) included esports as a medal sport for the first time at Asian Games 2022, which is likely to give further fillip. "Gaming industry will continue to thrive in India though there may be some dip in the user base if things go back to normal in the post Covid world. As far as funding is concerned, fund flow is likely to continue as the industry will mature in India with time," said Navin Kumar Rungta, founder of legal compliance firm eLagaan, who advises startups in fundraising activities.

Among major players operating in this space, Dream11 has already turned into a unicorn. Dream Sports, the parent company of 12-year-old gaming app, already has existing investors that include Tencent Holdings, Kalaari Capital, and Multiples Alternate Asset Management. With around 100 million users, the gaming platform offers real money fantasy games in cricket, kabaddi, NBA, hockey, and football. In valuation terms, Virat Kohli-backed mobile gaming startup Mobile Premier League (MPL) has emerged as the second-largest esports platform in the country.

MPL is at the cusp of reaching unicorn status as the company is currently valued at $945 million after the latest round of fundraising of $95 million led by Composite Capital. Other platforms like Pocket Aces, Winzo, Pocket52 also have a significant presence in the esports segment. Post last year's ban on Player Unknown's Battlegrounds (PUBG) by the Indian government's clampdown on Chinese or China-associated apps, Indian esports platforms have also seen a rapid rise in consumer base.

Experts said the growing interest of advertisers to showcase new products on these platforms reflects the rising adoption of these virtual games in India.

In recent years, Brands such as Dell, Intel, RedBull, Bharti Airtel, Acer, Louis Vuitton, SonyLiv, and MTV have leveraged the reach of the esports market to reach out to their targeted consumers.