Tremis Capital  is Wagering a Big Bet on Gaming Companies in India

The Indian gaming market is growing rapidly and is estimated to be around $2.6B. There are many reasons for this growth, including the increasing penetration of smartphones and broadband internet, the growing number of middle-class consumers, and the rising popularity of online games among young people. Along with the game development industry, the game streaming industry is also growing exponentially. The industry is estimated to be worth over $8.6 billion by 2027.

India is the second-largest market for mobile gaming in terms of downloads. This presents a lucrative opportunity for venture capitalists to invest in gaming companies. Tremis Capital, an early-stage investment firm that invests in highly curated startups witnessing excessive growth in gaming sectors. They are actively looking at gaming startups including e- sports and RMG firms that are growing exponentially. With the market growing rapidly, Tremis Capital believes that new players are entering the space of game development, game streaming, gaming contests, etc.

According to recent data, over 17 percent of the world’s gaming content download on Android devices was from India. Banking on these numbers, there is also an increase in the number of video games based on Indian storylines.

“The Indian mobile gaming industry is still in its nascent stages. We will see dozens of new gaming unicorns in the next 10-15 years. Indian economic growth and chip development technology will create a flywheel that will result in an exponential increase in high-end smartphone users in the country. In the next few years, the best gaming startups will start monetizing their users as the ecosystem matures and the gamers’ ability to pay increases,” says Pushkar Singh, Partner at Tremis Capital.

Challenges Tremis Capital Encountered While Investing in The Gaming Industry

1. Lack of awareness and understanding: The Indian gaming industry is still relatively new, and there is a lack of awareness and understanding of the sector and its potential. This has directly impacted the sector’s investment, as investors have yet to understand and appreciate the opportunities available.

2. Limited access to capital: The gaming industry requires large amounts of capital to develop and market games, which has been difficult for Indian developers to secure due to inadequate funding from investors. There are very few large gaming focused funds in India.

3. Accessibility:

Gaming PCs are prohibitively expensive, with a cost of nearly a lakh for a device that can handle gaming. Due to this high cost, many Indians opt for mobile gaming, as the entry barrier for decent hardware is only about 20K. As a result, gamers are being driven away from PC gaming.

4. Low Conversions: According to NASSCOM data, the Indian mobile gaming market had over 628 million users, which continues to increase yearly. However, the number of users willing to spend on in-game purchases is significantly low, making it difficult for gaming companies to monetize their efforts.

What the future holds for the Gaming Industry and Tremis Capital as an investor in this space ?

The future of the Indian Gaming Industry is expected to be very promising.It is poised for significant growth in the coming years, driven by rapid technological advancements, increasing disposable incomes, and a growing willingness to spend on gaming. New and innovative ideas and improvements in hardware, software, and other gaming-related technologies will drive the industry forward.

Additionally, the influx of investments from foreign and domestic players will provide significant impetus to the industry. The increasing penetration of broadband internet and mobile phones will also provide a strong platform for online gaming. Furthermore, the growing popularity of competitive gaming tournaments and e-sports will further fuel the growth of the Indian Gaming Industry. Venture Capitalists will continue investing in booming technologies like Blockchain-based gaming startups, which are sprouting nationwide.

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Disclaimer: Information mentioned here has not been verified or endorsed by The Gaming Reporter and is in accordance with the press release shared by the company or their appointed representatives.

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