Indian mobile gaming sector revenues to grow to $5 bn by 2025: Report

India’s mobile gaming sector will grow from $1.5 billion of revenue in 2020 to $5 billion by 2025, according to a report published by VC firm Sequoia and management consulting company BCG on Wednesday.

While India’s gaming company initially monetised through in-game advertising, 80 per cent of the $1.5 billion generated by mobile gaming in 2020 came from in-app purchases and real-money game (RMG) spends, the report said. There are now over 300 million gamers in India, and revenue across all gaming devices reached $1.8 billion in 2020, up 500 per cent from 2016.

Investors are bullish on gaming platforms because they mitigate the hits-driven nature of individual games. Such platforms accounted for over 88 per cent of all VC funding in gaming in 2020 — which was more than $400 million.