134 Online gaming

Online gaming
Coming of age
The online gaming segment in India continued to be events such as IPL, ICC World cup. While card games
driven by a rapid growth in mobile gaming users and an including rummy and poker remained popular in non-
acceleration of the same on account of COVID-19, and fantasy real money gaming, there has been significant
a deeper integration of payment options which partly traction in the adoption of other non-fantasy real money
helped the subscription part of monetisation. While casual games including cricket, live trivia and quizzing
casual games continued to attract majority of the online apps. Increased adoption of multi-gaming platforms
gamers, mid-core to hard-core games with multi-player made it convenient for users to access a wide range
setups witnessed a surge in uptake in FY20. of games on a single platform. The rise of professional
gamers in India also provided a huge boost to the
Online Fantasy Sports (OFS) also witnessed strong
e-sports segment.
growth during the year on the back of marquee cricket

Classification of online gaming

(by platform)

(by type)
Gaming

Gaming

Mobile PC Console Non RMG Real E-sports

(Casual & money
others) games
*Note: Real Money Games include Fantasy Sports and online skill-based games that involve money
monetisation)
(by Genre)
Gaming

Gaming
(by

Hyper- Casual Mid-core Hard- Free Freemium Subscription Based on

casual Games Core based commission
Games income

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 135

Historical estimates of online gaming market in India

FY20 CAGR
In INR billion FY16 FY17 FY18 FY19 FY20
growth (FY16-20)
Segment size 27.6 32.4 43.8 62.0 89.9 45% 34.4%
Source: KPMG in India analysis, 2020, based on primary and secondary research

Estimates of the market size in FY20 based on the type of games

Real Money Games

INR 36-39 INR 25-30 INR 23-27

billion billion billion
Non-fantasy Real Online Fantasy
Money Games Sports
Casual Games
Source: KPMG in India analysis, 2020, based on primary and secondary research

Online gamers in India

Growth
In million FY18 FY19 FY20
(%, FY18-FY20)
Number of gamers 269 300 365 16.5%
Source: KPMG in India analysis, 2020, based on primary and secondary research

As of July 2020, the total online gamers have crossed The lockdowns induced due to the COVID-19
nearly 400 million in India. As India is a mobile-first pandemic further accelerated the uptake of online
country, more than 90 per cent of the online gamers in gaming as people had more time at hand with limited
India play mobile games.1 entertainment options at their disposal. As a result, the
gaming industry witnessed a dramatic increase in active
Casual games are most popular genre in India as a
users and engagement levels during the lockdown.
majority tend to play casual games, owing to their ‘Free
to Play’ nature. India is among top five mobile gaming Casual games such as Ludo King and non-fantasy
markets by user base in the world. In 2019, around 5.6 sports real money casual games including card games,
bn mobile gaming apps were downloaded in India - the live trivia and quizzes witnessed the strong uptake
highest in the world and representing nearly 13 per cent during the lockdown as they attracted new users who
of gaming apps in the world. were discovering newer gaming options. While OFS
witnessed strong growth on the back of IPL in FY19,
postponement of IPL and decline in live sporting events
negatively impacted the platforms in the first quarter of
FY20.

1. KPMG in India analysis, 2020, based on primary and secondary research

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
136 Online gaming

Key underlying trends and themes

PUBG: the game that changed
Limited presence of game titles from Indian
studios among top games in India India’s habits
Among top 10 mobile games by downloads in India in The Battle Royale multi-player game PUBG Mobile
CY19, only Ludo King by Gametion Technologies is from was launched in India by Tencent in March 2018.
India whereas other nine games are from outside India.2 Tencent undertook a series of marketing activities
Similarly, among top 10 mobile games by consumer including a first ever TV commercial for a mobile
spend in India in CY19, Teen Patti by Octro and Teen game shown across different Hindi and English
Patti Gold by Moonfrog Labs is from India while others channels, multiple tournaments at college, city and
are from outside India.3 This highlights the fact that national level, influencer marketing, etc. to increase
Indian game development needs to further evolve the virality of the game and ensure widespread
to create global IPs that have the potential to attract adoption of game. The adoption was further
gamers as well as potential monetisation. enhanced by providing social elements such as
voice chats as well as conducting tournaments in
Monetisation is evolving, slowly but surely local languages.
Based on our interactions with developers and As a result, the game was able to achieve a
publishers, popular online games like Ludo King, World monthly active user (MAU) base of 23-30 million
Cricket Championship (WCC), have witnessed an with nearly 13 million daily active users (DAUs) in
uptick in monetisation across all streams of revenue.4 the second half of 2019, a year after launching the
Monetisation by advertisements and in-app purchase game in India. In a country that is known to be
varies across genres of casual games. unwilling to pay for games, PUBG has been able
While arcade and word-based games earn 80-85 per to achieve monthly revenues of USD7-8 million
cent of overall revenue from advertisements, actions every month between May and August 2019 by
games like PlayerUnknown’s Battleground (PUBG) selling virtual items to Indian consumers.8 While
earn nearly 60-65 per cent of revenue from in-app India revenues for PUBG look pale in comparison
purchases.5 While advertisements continued to have a to global revenues, the game has been able to
higher contribution in revenue, particularly for the casual get Indians to pay – a shift in behavior which
gaming category, there were green shoots indicative of is considered to be a major positive for the
increase in consumer spends on online gaming. Indian gaming industry. In addition, the game
has generated a significant user base for mid-
Some of the Ad formats that are gaining traction include: core games in the Indian market in a short time
• Playable ads allow a user to play a demo version of frame. The success of PUBG has made the
the game which is followed by a call to action for gaming ecosystem realize that India is ripe for
downloading the game monetisation.
• Rewarded videos are popular among gamers with The government of India, in September 2020,9
nearly 82 per cent of mobile gamers in APAC banned the mobile version of PUBG citing a threat
preferring this method6 as it allows the user to control to national security. While there are alternatives
when and whether they want to watch the ad available in the same genre, it
remains to be seen whether they
• Brand placements in games, though relatively new
can replicate the popularity of PUBG,
and expensive, is also being experimented. Chupa
as also the In-app purchases (IAP)
Chups has advertised across popular games like
monetisation potential that the game
Angry Birds and Amiga Zool in this format.7
had been able to unlock.
• Other trending ad formats include interstitial ads and
native banners.

2. State of Mobile 2020 – Top App & Company rankings (Combined iOS and Google Play), 6. Mobile Marketing Ecosystem Report 2020, India, 2020, accessed on August 12, 2020
App Annie, 2020, accessed on August 10, 2020 7. Mobile Game Ads in 2020: From Rewarded to Advergaming, Smartyads, October 2019,
3. State of Mobile 2020 – Top App & Company rankings (Combined iOS and Google Play), accessed on August 12, 2020
App Annie, 2020, accessed on August 10, 2020 8. Tencent’s PUBG Mobile makes over $7 Mn a month in India. Can it sustain?, Entracker,
4. KPMG in India analysis, 2020, based on primary and secondary research August 17, 2019, accessed on August 10, 2020
5. India Online Gaming: Seeing paradigm shift- Offers massive playing arena, BofA Global 9. 118 Chinese apps banned in India including PUBG Mobile, September 2020, accessed on
Research, 06 July 2020, accessed on August 10, 2020 September 4, 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 137

The needle has started to move on consumer spends Non-Fantasy Real Money Games (RMG)
in online gaming in FY20 (and beyond, given the continue to flourish
acceleration due to COVID-19). This growth in consumer
Non-fantasy real money games continued to grow over
spending is driven by the following factors:
FY20 and beyond; and witnessed the addition of newer
• The integration of UPI on Google Play in FY20 along formats. Card-based games i.e. Teen Patti, Rummy
with an increase in penetration of digital payment and Poker continue to lead the segment due to their
instruments has reduced the friction for purchase social connect and loyal user base. Among card-based
• Improvement in game economies and introduction of real money games, Rummy commands largest share
sachet pricing to cater to a wider Indian audience followed by Poker.10 Real money based casual games
have started to gain traction with Nazara’s WCC Rivals
• Gaming gaining greater acceptance as a means of Cash Tournaments (WCC game in real money format)
entertainment and greater willingness to pay for a and multiple quizzing platforms like Baazi Now and
better gaming experience. Zupee venturing into this space.

Major real money game platforms (other than fantasy sports)

Platform Registered user base

Paytm First Games 45 million+ (as on December 2019)11
MPL 40 million+ (as on March 2020)12
Rummy Circle 40 million+ (as on July 2020)13
Junglee Games 30 million+ (as on January 2020)14
A23 (formerly Ace2Three) 16 million+ (as on August 2020)15
Adda52.com 2 million+ (as on April 2020)16

RMG offers users a platform to play, where gamers can real money card game operators,18 with advertisement
find like-minded people. The business models revolve revenues accounting for a very small portion of the total
around ‘Free to Play’ and ‘Pay to Play’. Platforms are revenues.
encouraging users through promotional cash in their
The demographics vary widely across non-fantasy RMG
wallets, with a natural evolution of a user from a free to
vs. fantasy RMG. The same is a key determinant of the
a paid user, over a period of time.
channels and strategies that platforms utilize to target
The platform charges a commission on the total money the above audience sets.
pooled in for the game and remaining amount is
distributed as the prize money. For instance, some of the
The average age of user playing online
leading rummy platforms charge 8-10 per cent of pool
money as commission whereas, in online poker games, rummy is between 30-45 years whereas
the platforms charge a 4-5 per cent commission,17 that of user playing Poker is 18-25
owing to the faster turnarounds seen in poker games. years.19
Consumer spends form majority of the revenues for

10. KPMG in India analysis, 2020, based on industry discussions 16. Adda52 witnesses growth of 12% in Daily Active Users amid Lockdown, BW Disrupt, 1
11. Year in Review, Paytm First Games Gamestats 2019, accessed on August 12, 2020 April 2020, accessed on August 12, 2020

12. The New Playtime: The Secret To MPL’s Massive Mobile Success, Forbes, 9 April 2020, 17. KPMG in India analysis, 2020, based on industry discussions
accessed on August 12, 2020 18. KPMG in India analysis, 2020, based on industry discussions
13. Rummycircle.com, accessed on 25 August 2020 19. KPMG in India analysis, 2020, based on industry discussions
14. Junglee Games CEO Ankush Gera reveals how he took his startup into the ‘bootstrapped
unicorn’ club, YourStory, 22 January 2020, accessed on August 12, 2020
15. Ace2three’ transforms the online rummy experience with a brand new identity as ‘A23’,
PR Newswire, 25 August 2020, accessed on August 28, 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
138 Online gaming

Key statistics around non fantasy RMG20

INR 25-30 30-40 8-10%

billion million
Market revenue for Number of non-Fantasy Average commission
non-Fantasy Real Real Money Gamers for online rummy
Money Games (FY20) (FY20) games

INR 1,500- 8-12%

2,000
Average spend by user Average proportion of
per month on some paying users of total
of the leading Rummy registered users on the
platforms (June 2020) platform

Multigaming platforms like MPL and WinZO offer real MPL, in the recent months, has added titles like Free
money games apart from casual games. Within real Fire and Rogue Heist where users can face off against
money games, apart from popular card games and other for real money prizes.22 It has also added the real
fantasy sports, platforms are also adding the element money game WCC Rivals to its offerings in February
of real money gaming to mid-core games increasingly. 2020.23 These offerings have expanded the target
In order to cash in on the popularity of PUBG, audience for the real money games by attracting a
WinZO introduced free-to-enter online PUBG mobile different set of users. We also understand from our
tournaments on its platform in ten regional languages industry interactions, that both fantasy and non-fantasy
where users can win prize money of up to INR10 million RMG are a bigger draw at these multi-gaming platforms,
in March 2020.21 as compared to the casual games. A significant portion
of the engagement and a majority of the revenues on
such platforms, are attributable to RMG.

20. KPMG in India analysis, 2020, based on industry discussions

21. WinZO bring PUBG MOBILE online tournaments in 10 regional languages for Indian gamers, MobilityIndia, March 20, 2020, accessed on August 12, 2020
22. MPL launches India’s first indigenous shooter game, Rogue Heist, LiveMint, May 20, 2020, accessed on August 12, 2020
23. MPL adds WCC rivals to its cricket game collection ahead of IPL 2020, United News of India, February 29, 2020, accessed on August 12, 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 139

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
140 Online gaming

Skil Gaming in India:

The Coming of Age Story
Bhavin Pandya
Co-Founder & CEO,
Games24x7

Online Gaming in India has come a long way from being driven by the growth of technology infrastructure. Seven
a privilege of the select few with access to the internet numbers tell the real story of the rise and rise of online
at their workplaces and the affluent with home internet gaming in India.
connection in the early 2000s, to a mass phenomenon

650+ million 17x growth in Lowest ($0.09

450+ million
smartphones
mobile broadband data usage in the per GB) data cost
subscribers last five years globally

89% of the At 5 billion+ ~USD700mn

total gaming India has the revenues
revenue comes highest games generated by
from mobile download Real Money Skill
games globally Gaming in India
(2019)24

The pursuit of entertainment drives gaming growth

What started as a digital delight of the elites soon With this significant demographic tailwind, skill gaming
became embedded in the daily entertainment routine of is poised for robust growth. The online gaming industry
365+ million Indians. The base of Indian gamers is now is estimated to achieve revenues of USD ~2 billion by
democratized to become the third largest in the world FY22, with more than 55 per cent contribution coming
and growing at a strong CAGR of 30%+. Today, 90% of from skill-based games. These skill-based games like
the total gaming revenue comes from players older than fantasy sports, Rummy, and Chess require training,
25 years25 While 50% of India’s 1.3bn population are attention and intelligence of players.
under 25 years,26 60% of India’s gamers are under
25 years old.27

24. Games24x7 management estimates 26. United Nations Statistics Division – Demographic and Social Statistics (2018).
25. Games24x7 management estimates 27. Statista – November 2019

The views and opinions expressed herein are those of the guest author and do not necessarily represent the views and opinions of KPMG in India.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 141

Back in the day, hyper-casual games with the very basic through their taps and their clicks on your product. At
game design were in vogue, and gaming companies Games24x7, we use that clickstream and other data that
were monetising through in-app advertising. But after a is being generated by our players, very diligently in our
point, there was no real engagement because the same ideate, create, experiment, analyse cycle – the entire
games were being played again and again. To keep that process of creation.
business model going, one had to keep producing newer
We have made relevant technology choices that can
content and then live in the hope that more and more
enable us to scale horizontally. Our machine learning-
users would play on their platform and click on these
driven hyper-personalisation tools have fueled our
ads.
healthy growth. In terms of advanced technologies, we
Over time, a few companies realised that the only way have invested in homegrown platforms and off-the-shelf
to capitalise on the increasing popularity of the skill platforms that have helped us transition from a data-first
gaming industry was to provide gaming as a service – by to a model first company. For instance, a homegrown
charging a nominal fee for providing them immersive marketing automation tool allows us to handle a much
and engaging entertainment experiences on the gaming larger player base, run experimental personalised
platform. The evergreen nostalgia of skill games extends campaigns, serve bonuses, and promotions in an
the category beyond mere transactions and lead to a automated manner.
highly loyal and deeply engaged user base resulting in
superior monetisation potential. Due to the multiplayer Gamified Life
nature of evergreen games like Rummy, the network We believe that skill gaming will become highly
effect compounds over a period of time leading to competitive with an increasing number of companies
repeat usage and customer stickiness. aspiring to gain share of customer engagement and
wallet. For instance, over the last few years, online
Shaping the Future of Gaming in India fantasy sports has seen significant growth to touch
As an early entrant in India’s booming real money skill ~100 million players generating annual revenue worth
gaming segment, Games24x7’s steadfast focus on USD 320-340 million,28 with companies diversifying
building hyper-personalised experiences is the single beyond cricket to offer sports like soccer, kabaddi,
biggest reason for the company’s leadership position in basketball, among others. The E-sports market too is
the gaming industry in India. We have focussed on using a promising opportunity as it is estimated to touch 20
data science and analytics to understand user needs million players by 2021.
and then using technology and artificial intelligence to
Most of the excitement in India is around skill games
deliver well-rounded awesome gameplay experiences
that are played for money. While many casual games are
to each player across all our gaming platforms. Our
being downloaded from the various online stores, their
skill game platforms RummyCircle is the market leader
ability to monetise in India is still limited, as the In-App
in the skill gaming industry in India, and My11Circle
purchases only account for a small proportion of the
(a fantasy sports app) is one of India’s top 3 fantasy
total monetisation of casual games.
sports platforms in India (among 140+ fantasy sports
platforms). We will also start offering board games like For now, skill gaming with games like rummy, fantasy
carrom soon. sports, maybe even e-sports are coming of age and will
continue to reign for the next few years. Companies that
Our experience at Games24x7 revealed that we had
understand player behaviour, identify valuable trends
to increase the lifetime value and revenue per user
and insights to form hypotheses, pre-empt what players
to be able to build a sustainable business model. For
want and cater to their needs in a personalised manner,
us, the delivery of a hyper-personalised game playing
will stand out. And that is why we at Games24x7 believe
experience was critical for success. We are constantly
that gaming could be India’s next success story on the
endeavouring to understand player behaviour. In today’s
global stage.
day and age, consumers communicate with you

28. The business of fantasy sports, KPMG in India, July 2020

The views and opinions expressed herein are those of the guest author and do not necessarily represent the views and opinions of KPMG in India.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
142 Online gaming

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 143

Online fantasy sports (OFS) – rapid adoption continues

Online fantasy sports is one of the most important The number of Fantasy Sports platforms in India was
sub-segments in online gaming in India, due to the high estimated to be 140+29 in CY2019, however, the increase
transacting user base, with the OFS contributing 25-28 in competitive intensity and COVID-19 impact is likely to
per cent of the overall online gaming revenues in India in ensure that we see some form of consolidation in the
FY20. near to medium term.

Key statistics around online fantasy sports RMG30

INR 23–27 INR 160-170 90-95

bil ion billion million
Market Revenue for OFS Contest Entry Amount Number of OFS Real
Real money games (FY20) (CEA)/Gross Transaction money gamers (FY20)
Value (GTV) for OFS
platforms (FY20)

10–15% INR 6,000- 15-20%

7,000
Average commission for Average spends per user/ Average proportion of
Online fantasy sports year on some of the leading paying users as a % of the
OFS platforms (FY20) active users (FY20)

The top players which include Dream11, MyTeam11, on multi-gaming platforms are developed by in-house
My11Circle, Halaplay and Mobile Premier League teams, platforms also collaborate with other gaming
account for more than 90 per cent of the market, both studios and serve as a distribution channel for their
in terms of users as well as the Contest Entry Amount popular games.
(CEA).31 Mobile Premier League (MPL), for example, has on-
The growth in the OFS transacting base has resulted boarded a popular cricket game called ‘WCC Rivals’ from
in an exponential growth of the Contest Entry Amount Nextwave Multimedia. Such collaborations benefit both
(CEA) for the industry. Cricket continued to dominate the parties and enables multi-gaming platforms to offer
and constituted about 85 per cent share of the overall more games to their captive audience. In addition, these
CEA for the sub-segment32 with the ICC Cricket World platforms allow users to compete for real cash in popular
Cup 2019 (CWC 19) and IPL being the major contributing games like PUBG, Free Fire, etc. which otherwise are
factors for this rapid growth in the CEA in FY20. not available in a real money format.
Since multi-gaming platforms offer real money games
The rise of multi-gaming platforms too, they are unable to distribute games via the app
The gaming industry has started to witness an increase stores and need to spend incrementally on marketing
in multi-gaming platforms that try to cater to the diverse to create awareness for the product. MPL, Paytm First
entertainment needs of gamers with a mix of casual, Games and WinZO are among the popular multi-gaming
real money and fantasy sports games available on the platforms operating in the country that have been able to
same mobile app. While some of the games available achieve a significant user base.

29. The business of fantasy sports, KPMG in India, July 2020, accessed on August 12, 2020 31. KPMG in India analysis, 2020, based on industry discussions
30. KPMG in India analysis, 2020, based on primary and secondary research 32. The business of fantasy sports, KPMG in India, July 2020, accessed on August 12, 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
144 Online gaming

Major Multi-gaming platforms:

Platform Number of game titles Registered user base

Paytm First Games 300+ (as on August 2020)33 45 million (as on December 2019)34

MPL 40+ (as on April 2020)35 40 million (as on March 2020)36

WinZO 70+ (as on April 2020)37 20 million (as on April 2020)38
Source: KPMG in India analysis, 2020, based on primary and secondary research

Paytm First Games has organized multiple free to play E-sports – The rising star
game and e-sports mobile tournaments on its platform. The e-sports eco-system in India is fast evolving with
It organized a free to play Ludo tournament by name – traction being seen in sponsorships, media rights and
‘Ludo Lakhpati’ for five days between 1 May 2020 and advertisements of e-sports tournaments.41 Currently,
5 May 2020 with prize money of INR1 lakh every day.39 e-sports tournaments in India mostly comprise of PUBG
The company has also been focusing on e-sports heavily, and online cricket game tournaments . This is, however,
which we talk about in the next section. expected to change in times to come as more titles
Multi-gaming platforms rely heavily on data analytics become popular.
to provide relevant gaming content to users and micro-
target users for different games in order to ensure
high retention levels. Casual games form a significant
E-sports has not only driven a significant
portion of offerings on these platforms and a newly increase in professional players for
acquired users tends to play free games on the platform. online gaming in India but also seen
However, over the longer-term lifecycle of the users, a surge in audiences with nearly 14
the operators rely heavily on the real money gaming million e-sports viewers across different
particularly, card games and fantasy sports segments to
generate revenues.40
modes of access like TV, OTT and multi-
gaming platforms as on 2019 in India.42

Indian e-sports teams have gained prominence with their performance at the world stage43,44

Celtz, the Indian PUBG Mobile

Orange Rock team, who is the current PUGB
Mobile Pro League (PMPL) South
Orange Rock, one of the top e-sports Asia champions have found an
teams in India, finished second investor in Galaxy Racer e-sports,
in the recently concluded global a UAE-based organisation
tournament ‘PUBG Mobile World
League 2020 Season 0: East’
Team Celtz
33. Paytmfirstgames.com, accessed on 25 August 2020 39. Paytm First Games announces free-to-play Ludo tournament with cash prize, Times of
34. Year in Review, Paytm First Games Gamestats 2019, accessed on 23 August 2020 India, 30 April 2020 accessed on 22 August 2020

35. What Is MPL? How To Download MPL App That Gives Cash For Playing Your Favourite 40. KPMG in India analysis, 2020, based on industry discussions
Games?, RepublicWorld, 8 April 2020; accessed on 25 August 2020 41. KPMG in India analysis, 2020, based on industry discussions
36. The New Playtime: The Secret To MPL’s Massive Mobile Success, Forbes, 9 April 2020, 42. Newzoo Analytics, accessed on August 15, 2020
accessed on 25 August 2020 43. Orange Rock finishes second overall at PUBG Mobile World League 2020 Season 0: East,
37. How focusing on Bharat helped gaming startup WinZO notch up 20M users in 1 year, The Bridge, August 18, 2020, accessed on 25 August 2020
YourStory, 23 April 2020, accessed on 25 August 2020 44. PUBG Mobile: Galaxy Racer Esports partners with Team Celtz, Sportskeeda, July 3, 2020,
38. How focusing on Bharat helped gaming startup WinZO notch up 20M users in 1 year, accessed on 25 August 2020
YourStory, 23 April 2020, accessed on 25 August 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 145

At the same time, India is witnessing interest from tournaments in India.50 It also partnered with Riot
foreign e-sports teams who are looking to set-up shop Games for Teamfight Tactics mobile e-Sports
here. Fnatic, a global e-sports team, has shown interest tournament held between 17 June 2020 and 21 June
in setting up a facility in India and has announced a 2020 wherein 512 Indian gamers competed for a prize
nation-wide talent hunt for a player that will receive a pool of INR75,000.51
professional contract with the squad.45
As consumption of e-sports content starts to witness
The supply and consumption of e-sports streaming has a greater increase, there is expected to be a greater
also started to see a rapid surge in India, in-line with the interest for the streaming and broadcast rights for
growing success of Indian teams at the world stage. e-sports tournaments. Multiple video streaming
Globally, YouTube collaborated with Activision Blizzard platforms like YouTube, Voot, Disney+ Hotstar, MX
in January 2020, for exclusive streaming of its titles like Player, Sony LIV, etc. have already started to add
Call of Duty and Overwatch.46 e-sports content to their offerings. For example,
Nodwin and Sony LIV had partnered up to live stream
To cater to this growing opportunity in India, Loco, a
the International 2019 DOTA 2 E-sports tournament52
hyper-casual gaming and quizzing platform, added game
and the ESL India Premiership Fall Season 2020 will be
streaming and e-sports broadcasting to its offerings
exclusively broadcast on Disney+ Hotstar.53
in April-20.47 To ensure adequate supply of streaming
content, Loco has also entered into arrangements E-sports in India, however, needs to contend with
with Fnatic, a global e-sports team and Red Bull for its multiple challenges in terms of community building and
e-sports properties. Loco attracted 5.8 million viewers infrastructure requirements. Since the e-sports gaming
for the event ‘Gaming For Good’ organized in April-2048 ecosystem in India is relatively under-developed, there
and has seen a six-fold increase in daily active users on is a dearth of big publishers in the country with Tencent
the platform in a month recently.49 being the only well-known publisher for most e-sports
tournaments in India. In addition, there is a lack of
Paytm First Games has also teamed-up with Esports
gaming academies in the country that can help budding
Players League (ESPL) for hosting mobile e-sports
gamers develop their skills.54

45. The top Indian esports business developments in June 2020, Esports Insider, July 3, 2020, 50. Paytm First Games teams up with ESPL for mobile esports tournaments in India,
accessed on 25 August 2020 VentureBeat, 14 April, 2020, accessed on 25 August 2020
46. YouTube signs exclusive streaming deal for Activision e-sports like Call of Duty and 51. Paytm First Games partners Riot Games for e-sports tournament, Times of India, 10 June
Overwatch, The Verge, January 24, 2020, accessed on 25 August 2020 2020, accessed on 25 August 2020
47. Pocket Aces’ Loco upgrades its product offerings – Introduces game streaming and 52. Nodwin, Sony LIV partner up to live stream the International 2019 DOTA 2 E-sports
esports broadcasting to its app, Media Brief, April 1, 2020, accessed on 25 August 2020 Tournament in India, FirstPost, 19 August 2019, accessed on 25 August 2020
48. India’s Own Twitch: Game Streaming Startup Loco Partners Global eSports Giant Fnatic, 53. ESL India Premiership is back with Fall Season 2020, BusinessWorld, 28 August 2020,
News18, June 17, 2020, accessed on 25 August 2020 accessed on 30 August 2020
49. Local gaming app Loco makes a pivot into fast growing e-sports. It must fight YouTube, 54. KPMG in India analysis, 2020, based on primary and secondary research
ETPrime, August, 2020, accessed on 28 August 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
146 Online gaming

Future of Esports in
India Decoded
Akshat Rathee
MD & Co-Founder,
NODWIN Gaming

Esports in recent years has shown a rapid growth the other hand, is where PC gaming and esports are
globally. The rapidly growing market touched the billion- prevalent. CS:GO, LoL and Dota 2 comes in as the most
dollar mark in 2020. The global esports market in 2020 preferred esports titles in the region. India at the same
made up to 973 million USD in total revenue and has time conquered the spectrum of mobile esports with
garnered 450 million esports fans across the globe. PUBG MOBILE. Two of the most important factors that
When compared with the 2.2 billion active gamers of played a role in making India the face of mobile esports
the world, esports has a huge room to fill. The industry are affordable internet connectivity and affordable
had its global appeal since inception, because of which smartphones coupled with the foundation laid by a
esports at the moment places itself above traditional tech-hungry young population. Cheaper internet and
sports like NHL and MLB, which have geographically smartphones led to mobile gaming and later on got
contained audience. The 2014 League of Legends Finals extended to mobile esports.
was watched by 27 million unique viewers as compared
India had a gradually developing esports ecosystem
to the 15.5 million viewers during Heats-Spurs Finale
dominated by PC gamers before the smartphone boom.
series. While world esports grows, many countries
Professional teams and players relied on a very small
followed suit and started to grow alongside and even
number of national tournaments and cafe challenges
surpass big players in the industry. One such country is
around the year. PUBGM comes along and paves way
India.
for a well-structured framework of esports with brand
India in the past couple of years, has emerged as the integrations, talent programmes, ladder system for
hotspot for mobile esports. Even though the market tournaments and huge prize money. And along with
in India is in its nascent stage, the statistics go above PUBG MOBILE, several mobile titles like CODM and
and beyond many of its competing markets. With over Free Fire garnered immense popularity among the Indian
1.3 billion people, 50% of the population falls under the masses. In 2019 alone, Indians downloaded 5.6 billion
age group of 0-25 years, making it one of the youngest mobile game applications to make it a world record.
populations in the world. Indian gamers constitute up
When mobile gaming transitioned to mobile esports,
to 365 million across mobile, PC and console which is
the quintessential element of esports was tapped upon
projected to reach 440 million by 2022. In the year 2019,
by NODWIN Gaming, which we call the “watching
India alone amounted 13% of the total game downloads
experience”. Esports quickly rose to this mega spectator
worldwide with mobile games in the forefront.
sport where you rush into arenas filled with thunder
Countries across the globe have varied preferences sticks and placard wielding fans, watching your favourite
when it comes to esports and gaming. The US, for gamers play right in front of you and have a more
example, is a lover of console gaming where prominent tangible fan-idol experience.
game titles are Call of Duty and Fortnite. Europe, on

The views and opinions expressed herein are those of the guest author and do not necessarily represent the views and opinions of KPMG in India.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 147

The incredibly high numbers also have to do with the And when there is content, there is always a media
lockdown situation where esports entertainment was platform to distribute it. In addition to YouTube, other
the only available live sports action. For now, packed OTT and digital content platforms like Hotstar and
indoor stadiums and huge venues have become passé Airtel Xstream maximised their esports content in the
with players carrying forward the spirit of sportsmanship last five months for the millennial’s shifting interest of
online. All Indian and international esports events entertainment form. While we talk about OTT services
have gone fully online. Thus, resulting in a spike in an and catering to a target group, it has to be emphasized
online viewership like never before. Online viewership that esports in India lately has become all-inclusive. The
for tournaments like PMCO and PMPL this season growing interest from rural India with regions such as
crossed 100 million in total. The little getaway time of Tamil Nadu, Karnataka and the Hindi belt giving us some
the lockdown allowed the youth of the country to try amazing gaming talent. The vast and diverse cultural,
their hand in the professional circuit. The best example regional and geographical spread of India has helped in
of participation would be the 1866% increase in the creation of a range of unique and engaging gaming
registrations for the ESL India Premiership by NODWIN content for the audience from every part of the country.
Gaming held in June 2020. This was the highest Regionalisation of content took esports beyond the big
spike in the history of India’s longest running esports metro cities and resulted in the penetration of a much
tournament. The psychology around esports has rapidly bigger audience base.
shifted from “leisure activity” to “active entertainment
The odds are in favour to say that esports will be the
source” and “career option”. As social distancing and
future of entertainment in India actively spearheaded
stay-at-home mandate got everyone bad, socializing
by the mobile division. This is primarily due to the
online over games became a more convenient getaway
uniqueness and competitiveness of this market and
to take out the lockdown blues, have fun and stay
how the esports ecosystem is shaped to perfectly fit the
engaged.
social structure of a big diverse nation.

The views and opinions expressed herein are those of the guest author and do not necessarily represent the views and opinions of KPMG in India.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
148 Online gaming

COVID-19 – Providing tailwinds to an already growing segment

Total downloads for top 100 games in India on Total monthly active users* (MAUs) for top 100
Google Play (million) games in India on Google Play (million)

160 - 657
% +9%
139 +15 -21
% 602
126 481 +25%

Mar-20 May-20 Jul-20 Mar-20 May-20 Jul-20

Source: Newzoo Analytics accessed on 20 August 2020 Note: These are cumulative MAUs and not unique users
Source: Newzoo Analytics accessed on 20 August 2020

Average weekly time spent on mobile games Total time spent on online gaming in billion
(in hours) minutes, by gender

4.1
-24
%
3% 63.47
Male

3.1
+6
2.5 40.69
+56%
Female

32.51
+48% Apr-20
21.95
Mar-20
Pre COVID Week of Week of
25th April 27th June

Source: Crisis Consumption – An insights series into TV, smartphone and Source: COVID-19 and its impact on digital media consumption in India,
audiences (10thEdition) by Nielsen, BARC, July 2020 Comscore, April 2020

Key Takeaways:
• Increase in downloads and users - The total the smartphone users on online gaming declined
monthly downloads for the top 100 games in India to 3.1 hours in June 2020; still 20 per cent higher
on the Google Play store peaked at 160 million in than the levels before the pandemic.
May 2020. The MAUs for the top 100 games on
• The young and female demographic show
Google Play in India have consistently increased,
strong growth - The 15-24 year age group spent
from 481 million in March 2020 to 657 million in
the most amount of time on online gaming in
July 2020.
April-20 with the highest surge of 73 percent
• Increase in engagement levels i.e. time spent m-o-m growth in terms of time spent among
per user - The weekly time spent per user on all age groups, as they likely had the most time
gaming on smartphones, surged by 62 per cent at hand with schools and colleges shut. The
from pre-COVID levels to reach a peak of 4.1 total time spent on online gaming by the female
hours in the fourth week of April. However, as demographic saw an impressive growth of 48 per
India began to unlock, the weekly time spent by cent from March 2020 to April 2020.55

55. COVID-19 and its impact on digital media consumption in India, Comscore, April 2020, accessed on 25 August 2020

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 149

The game production value chain was less COVID-19 brings OFS to a complete halt,
disrupted but the return of IPL a positive
Despite the pandemic, gaming content creation has The COVID-19 pandemic, and the resultant global
not suffered unlike other forms of entertainment like lockdowns resulted in a near complete cancellation/
television and films which are largely outdoor driven and postponement of major sports tournaments / events
more vulnerable to disruptions on account of lockdowns across the world resulting in an adverse impact on the
and social distancing norms. OFS industry in India.
Game development, however, has been resilient with
studios across the world adapting to a work from Our industry interactions have indicated
home environment. For instance, U.S.-based game
developer Riot Games, famously known for the game
that Q1 FY21 was adversely impacted
League of Legends, implemented a staged remote with the Indian Premier League (IPL)
working approach and had 92 per cent of its campus not being held in the April to May-20
staff working from home by mid-March.56 Similarly, window, as the IPL constitutes about 35-
Indian companies like Lakshya Digital were quick 40 per cent59 of the industry revenues.
in implementing and adopting to work from home
arrangements in the aftermath of the pandemic.57

Monetisation likely to see a boost

Leading gaming players witnessed a meaningful Further, the impact of postponement of major global
increase in consumer spending over the last few Football leagues, Indian Cricket and the Euro 2020,
months. While WinZO witnessed their average resulted in a depressed Q1 FY21, with the CEA being
transaction sizes grow from INR35 – 40 pre lockdown only 10 to 12 per cent of Q1 FY20 CEA.60
to INR75 – 80 post lockdown in April-20, Paytm First
Games saw transactions and average transaction
sizes go up by 60 per cent in the same time frame.
Established companies like Nazara and Gametion saw
a five and ten-fold increase respectively for in-app
purchases during the same timeframe.58

This boost in monetisation, could

potentially play out over the long term
as well, with habit formation taking
place, and would help the segment
partially mitigate the challenge of low
monetisation in the years to come.

56. How Riot Games Is Tackling The Coronavirus Crisis, Forbes, 20 March 2020, accessed on 58. Will The Great Lockdown Unlock Monetisation For India’s Gaming Startups?, Inc42, April
25 August 2020 30, 2020, accessed on 25 August 2020
57. Coronavirus impact: Indian game art creation companies are more busy than ever, Money 59. KPMG in India analysis, 2020, based on industry discussions
Control, 22 April 2020, accessed on 25 August 2020 60. KPMG in India analysis, 2020, based on industry discussions

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
150 Online gaming

The OFS operators in India have been proactive in their majeure, by employing multi-pronged strategies61 to
actions to combat the challenges posted by this force ensure continued user engagement.

Increase in the spread of sports being covered to include sports like baseball,
handball, etc.

Showcasing sports leagues held in secondary markets like Vincy Premier

League, Nicaragua League, Taipei T10 League etc.

Adding skill-based ancillary offerings such as Rummy (MyTeamRummy),

quizzes etc.

Investing in platform innovations to improve user engagement

Leveraging platforms like FanCode and SportsTiger to expand the offerings

under sports streaming and news categories

With the return of international sport from May/June It was observed across some key card based RMG
2020 onwards, Indian sports fans are likely to witness platforms that the average spends/user/month have
non-stop sporting action for eight to nine months from actually declined post the lockdown, while the overall
September 2020 onwards, including the IPL. This would GTV had increased in real terms. The same is due to the
help to partially offset some of the revenue loss that following.64
occurred in Q1 FY21.
• A large number of users signed up for these RMG
Further, with global events like the Euro 2020 postponed platforms once the lockdown started, and a significant
to FY22, as well as the ICC Cricket calendar also proportion of them were free users or users with very
likely to see a packed FY22 owing to rescheduling of little spends. The same pushed the average spends/
cancelled bilateral Cricket series; it is not inconceivable user down
that the OFS sub-segment sees a ‘V-shaped’ recovery
• However, the overall GTV increased as spends got
from H2 FY21 onwards. Indeed, based on our industry
redirected from fantasy gaming, which was practically
interactions, we expect the overall CEA to decline by
shut owing to no live sports on offer
only 20-22 per cent62 in FY21.
Evolution of gaming as a means for virtual
Non-Fantasy Sports Real Money Games get
social interaction
a fillip
The lack of social interactions in a prolonged lockdown
The pandemic induced lockdown benefitted the non-
started to trigger massive demand for platforms that
fantasy RMG segment with a growth in new users
enabled virtual socialising. ‘Houseparty’, a video chat
coming on board, both on card based as well as multi-
app that empowered users to participate in shared
gaming platforms. The lack of live sports meant that
gaming experiences, became immensely popular among
some fantasy sports users also tried their hand at non
millennials and Gen Z during the lockdown.65
fantasy real money gaming during the lockdown; this
cross-over though was small as the target user base for
both segments is different.63

61. KPMG in India analysis, 2020, based on industry discussions 64. KPMG in India analysis, 2020, based on industry discussions
62. KPMG in India analysis; 2020, The business of fantasy sports, KPMG in India, July 2020, 65. Video conferencing app downloads top 62 million as people stay indoors due to Covid-19
accessed on August 25, 2020 pandemic, Hindustan times, March 31, 2020, accessed on 25 August 2020
63. KPMG in India analysis, 2020, based on industry discussions

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 151

Similarly, casual gaming platforms with multi-user the second half of 2020. In July 2020, the Madras High
gameplay generated significant interest and witnessed Court highlighted that a comprehensive regulatory
strong user uptake. Tambola, a popular party game by framework by a regulatory body was necessary for
Octro, witnessed a 200 per cent surge in users in a the online gaming industry to curb illegal activities and
period of four months ending July-20 as users explored suggested that the government should regulate and
online avenues for socializing.66 Ludo King, one of the monitor such virtual games.70 The court was concerned
most popular multi-player online game in India, added that real money games like rummy which have seen
the capability for voice chat and sharing of e-greetings in significant growth during the lockdown negatively
August-20 to further enhance the ability to socialize on impacted the fragile financial situation of unemployed
the platform.67 youth who were getting addicted to games in order to
win cash prizes.
While some regulatory clarity is there
The court referenced the ban on online rummy (and
around RMG, challenges remain other games of skill) imposed by the Telangana
In the last few years, there has been some clarity that government in 201771 and suggested that the Tamil Nadu
has emerged around RMG, especially around OFS, with government should also set up a legal framework to
the Punjab and Haryana High court,68 and the Bombay regulate online gaming.72 The high court has observed
High Court69 ruling that Dream11’s format is a game of that state and central governments can pass laws to ban
skill and not a game of chance. games like online games that involve money across the
However, the debate around laws and regulations for country.
the online gaming industry was in the news again in

OFS Rummy Poker Teen Patti

AP & Telangana Not allowed Not allowed Not allowed
License needs to License needs to License needs to
Nagaland
be obtained be obtained be obtained
Not allowed to be
Assam Not allowed Not allowed Not allowed offered in Real
money format
Odisha Not allowed Not allowed Not allowed
online across India
Restricted to Restricted to Restricted to
Sikkim
Gaming parlors Gaming parlors Gaming parlors
Gujarat Allowed Allowed Not allowed

Note: Other states which are not mentioned allow the above formats of RMG
Source: KPMG in India analysis, 2020, based on secondary research

An uncertain regulatory environment with multiple states taking different stands is likely to present itself as a
challenge for the real money gaming segment.

66. Apps hit the jackpot with online Tambola, Business Line, July 12, 2020, accessed on 25 70. Madras HC suggests law to regulate online games such as Rummy, Outlook, July 24,
August 2020 2020, accessed on 25 August 2020
67. Ludoking launches voice chat updates and share e-greetings, easypresswire, August 1, 71. Telangana government’s new ordinance amends the gaming act to ban online rummy,
2020, accessed on 25 August 2020 Scroll.in, June 18, 2017, accessed on 25 August 2020
68. The Skill element in Fantasy Sports games, Nishith Desai Associates, accessed on July 72. Madras High Court suggests a law to regulate online games such as rummy, Financial
24, 2020 express, July 24, 2020, accessed on 25 August 2020
69. Fantasy sports gaming is not gambling, Nishith Desai associates, July 2019, accessed on
August 10, 2020

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
152 Online gaming

Online gaming – Projected performance

FY21 growth FY22 growth
In INR billion FY20 FY21P FY22P
over FY20 over FY21
Industry size 89.9 98.5 142.7 9.5%. 44.8%
Source: KPMG in India analysis, 2020, based on primary and secondary research

FY21 growth FY22 growth

In million FY20 FY21P FY22P
over FY20 over FY21
Number of
365 436 510 19.5% 17.0%
gamers
Source: KPMG in India analysis, 2020, based on primary and secondary research

Mobile games will continue to dominate the gaming • Real Money Games are likely to witness growth
market in India, owing to ~97 per cent of the internet in consumer spends as newer formats like casual
base being wireless. The growth for the online gaming money real games attract a wider audience to this
segment is projected to outpace all the other segments segment
of M&E industry in India, and is likely to be driven by:
• Fantasy Sports, though likely to decline by 20-22 per
• Growth in online gamers and active users in the next cent in FY21, is expected to witness a sharp growth
2-3 years in FY22 as sports come back
• Monetisation per user is expected to improve with • Technological interventions such as AR/ VR,
consumer spends increasing due to a behavioral shift analytics on gamer data, interactive streaming, etc.
caused by games like PUBG, as well as increased ad will continue to innovate & improve the gaming
spends coming in due to greater engagement experience & will further help in industry growth.

Conclusion
Gaming remains one of the fastest growing segments for the media and entertainment industry and is
expected to benefit in the long run from the acceleration in consumption. Monetisation is likely to follow the
increase in consumption with a lag as the fundamentals remain strong for the industry.
The segment would need to work around regulatory uncertainty, distribution challenges and improvement in
the game economy to suit Indian audiences to ensure that gaming outpaces all the other segments in the
near to medium term.`

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 153

Industry Perspectives

The Indian fantasy sports industry has come a Gaming as an entertainment medium has grown
long way from 10 operators in 2016 to 140+ in rapidly during Covid-19 pandemic. Inherent need
2019 and 20L users in 2016 to 9Cr+ sports fans for people to socialize along with large number of
playing fantasy sports currently. This growth has concurrent users on game platforms during times
primarily been fuelled by the developments in the when social distancing norms are to be followed,
Indian sports sector - the emergence of multiple has led to evolution of games as community
sports, leagues, formats; and India’s rapidly platforms. Gaming has also entered into the
improving digital infrastructure. Dream11’s Title living rooms and has become a way of family
sponsorship of IPL 2020 is a testament of how a entertainment.
digital fan engagement platform like fantasy sports
is becoming integral to real-life sporting events.
Fantasy Sports is bringing sports leagues and
fans closer to each other by creating meaningful Manish Agarwal
engagement. CEO,
Nazara Technologies Ltd.

Harsh Jain
CEO & Co-Founder,
Dream11 & Dream Sports
Gaming ecosystem has evolved considerably
during last year with new & localised content
for Indian gamers and emergence of esports
, streaming & hybrid apps. Games have also entered
The gaming industry has changed rapidly over the on OTT platforms wherein they are deployed
last 3-5 years in India. Gaming has gained wider as engagement tools with some monetization
acceptance as a mode of entertainment and as a opportunities. Such new crossovers will further
result has attracted more consumer spends over grow the gaming habits in India
the years. The adoption of newer digital payment
mechanisms like mobile wallets, UPI, etc. coupled
with sachet-pricing and the use of data sciences
Anuj Tandon
have been critical elements for games to draw
CEO,
a larger share of the consumer’s entertainment
Yoozoo Games India
wallet. An increasing willingness among gamers
to pay online for entertainment is likely to drive
growth for years to come.

E-sports, as a category, is poised for massive

Saurabh Aggarwal growth in India. This is evident from the multiple
CEO, Octro platforms starting to emerge alongside growing
interest from international players in an evolving
ecosystem that will be driven by growth in the
number of professional gamers in India.

Mr. Roland Landers

CEO, All India Gaming Federation
(AIGF)

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
154 Online gaming

Deeper penetration of digital payments has been Fantasy Sports platforms have been severely
the catalyst of growth for the gaming industry. affected during the pandemic as sporting events
Real money games, in particular, have immensely have either been postponed or cancelled. There
benefited as digital payment mechanisms like UPI has been a massive drop in active users between
made purchases friction-less and drove greater March to June due to the lack of engagement
consumer spends on games. The future growth in options. While some operators have added
the real money games segment, though, is likely multiple hyper casual games, we have added
to be driven by new innovative games that can be sports quiz to engage our users while ensuring the
legally qualified as skill-based games. user experience remains centered around sports.
However, with live sports activity commencing
from June, we are expecting active user base and
engagement levels to catch-up quickly.
Ankush Gera
Founder and CEO,
Junglee Games
Saurabh Chopra
Co-Founder and CEO,
BalleBaazi

The E-sports value chain is nascent in India.

Without an ecosystem approach to this, no single
player or team will really be able to create long
term value. Two key factors for esports growth: a) There is a fine balance between simplicity and
a streaming platform that provides streamers with depth in a game – it is simple to get a new user
the right creator stack to ensure greater interactivity on the game and casual games have done well on
with their audience and various revenue options getting users onboard. However, once the user is
to monetize their unique skills (direct to consumer familiar, depth in gameplay is needed to keep the
and advertising); and b) Esports organisations need gamer engaged and monetize better. This depth
to mature and provide value to advertisers and in gameplay can empower developers to tap into
consumers. Post this, many teams will become in-app purchases with the purchase of virtual
viable and the road to becoming a streamer will goods fast changing into a habit for gamers of the
become clearer and more commonplace than ever new generation. This spending habit among new
before. These are all rapidly happening in India and generation gamers is expected to drive massive
are not too far in the future growth for the gaming industry in India.

Anirudh Pandita Keerti Singh

Founder, Co-founder and VP - Growth,
Pocket Aces Hitwicket

The challenge of sideloading the game still exists as everyone doesn’t know
how to side load and people still need to understand that downloading an
Paavan Nanda app from another platform is not illegal. However, this friction is less within
CEO, a single multi-gaming platform. Referral of users does help in wider adoption
WinZO of the platform as it allays the worry of sideloading.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
 A year off script 155

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.