India has the world’s second-largest gaming population, with 568M gamers, and 90% of gamers playing on mobile. While RMG games account for 60% of overall casual gaming revenues, in-app purchases are expected to grow at a 35% CAGR. This brings us to why we decided to dive deeper into this sector. You can check it out here.
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90% of gamers in India play games on mobile and yet only 13% of the revenue comes from non-RMG titles. We were also equally surprised to find out that 144mn users have paid for a game. Almost 10% of India.
From a game development perspective, we have divided the marketing into 3 parts:
- Market research & development — to find what titles to develop
- Test, release, distribute — to scale up acquisition
- Engagement & analysis — to increase revenue & control acquisition costs
We see value across most parts of the value chains that we could identify. While we may not be actively evaluating ad networks at this point in time, we’d be happy to change our views when we see the right kind of models emerge
We’ve realized that gamers progress from playing casual games to mid-core games to hardcore games or sometimes take a step back depending on time, affordability & their skill level.
While mobile, PC & consoles are strong distribution channels, we’re seeing eSports emerge as a new distribution channel for games. Not only does it act as a distribution channel to promote games, but it gives marketing sponsors a chance to showcase their products, too.
This is Blume’s game design formula. Each game is a function of its gameplay mechanics, genre, distribution channel, monetization mechanics & retention mechanics. We have broken down a bunch of games using this formula across the Bluprint.
The 4 spaces we are the most excited about are:
- Mobile gaming
- Kids gaming
- Building for / Building consoles
- AI stack for game creation, analytics, and LiveOps
Authors
Marmik Mankodi
Marmik is excited about opportunities in consumer tech, consumer apps, consumer services & ed tech.He has spent 9 years working at startups & scaling up notable brands in India & Southeast Asia. Marmik was an early…- Current Section
- Vice President, Investment
- Sector
- Domestech
Nachammai Savithiri
Nachammai supports the Consumer investments practice at Blume. She is a graduate from IE University, Madrid, holding a Master's Degree in Digital Business & Innovation.Nachammai comes from the other side of the table,…- Current Section
- Analyst
- Sector
- ConsumerTech, Commerce & Consumer Brands, HRTech, EdTech, Media, Entertainment & Gaming
Rajat Garg
Rajat interned with Blume in the summer of '24, right before going to Yale School of Management. After or before work hours, Rajat can be found playing pickleball or meditating.- Current Section
Commentaries
ConsumerTech Playbook
Building a ConsumerTech business doesn’t have to be complicated! With this belief, Marmik Mankodi and Nachmmai Savithiri have created Blume’s ConsumerTech Playbook—a practical guide designed…- Current Section
- Commentary
- Authors
- Marmik Mankodi, Nachammai Savithiri, Rajat Garg
- Published