Mobile Gaming Market Opportunity

KEY HIGHLIGHTS
Mobile gaming expected to triple to a $5Bn+ market opportunity by 2025

300Mn+ user base, growing with ease of access; spike in new adoption; leading companies actively shaping market
evolution with increased marketing spends
Monetization in non-RMG nascent but trending positively

Large dependence on ad revenues today (~43% of non-RMG1 spend) with low paying base (7-8% for non-RMG1); higher
ARPPU's2 expected to provide fillip to industry revenues
Unprecedented level of investor interest indicative of high expected growth in the industry
33% of all funding for gaming in India came in Q12021; gaming platforms winning at the back of variety in proposition
Copyright © 2021 by Boston Consulting Group. All rights reserved
Familiarity in content, user generated content (e.g., esports), influencers

serve as effective hooks to onboard new gamers, ease adoption and drive more engagement overall
Consumer research insights point to market evolution

Six gamer personas defined by context i.e. occasion, group composition; limited correlation to demographics; rise of
women gamers, gaming increasingly being viewed as "productive" and "social", competition induces more spend
1. Real Money Gaming 2. Average revenue per paying user

1
CONTENTS
TABLE of
MARKET EVOLUTION OF DECODING THE REALIZING THE INSPIRATIONS:

OVERVIEW THE INDIAN INDIAN GAMER OPPORTUNITY WHAT IT TAKES

GAMING TO WIN
ECOSYSTEM
$5B+ market Who plays where, key Insights from consumer Action agenda for Learnings from
opportunity at the back trends shaping the research companies exemplars
of exponential growth ecosystem
2
CONTENTS
TABLE of


GAMING TO WIN
ECOSYSTEM
3
KEY HIGHLIGHTS
01 Gaming a $1.8Bn sunrise sector in India: still relatively small (~1% of global) but growing very
MARKET
OVERVIEW
fast (~38% CAGR)

EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
Mobile-first trend within gaming continues strong: sizeable user base (300Mn+) with ~$1.5Bn
DECODING
THE INDIAN
GAMER 02 revenues and expected to reach $5Bn+ by 2025 - increased availability and adoption
turbocharging user base
REALIZING
THE
OPPORTUNITY
Monetization still nascent: paying base still low (7-8% for non-RMG1, 15-20% for RMG) but
INSPIRATIONS:
WHAT IT
TAKES TO WIN
03 trending positively and alongside higher ARPPU's2 expected to provide momentum to industry
revenues
04 Multiplayer games are seeing increased time spent and monetization because consumers like to
compete and spend time socially with their friends
05 Market made up of a mix of genres: different evolution vs. markets like China wherein action and
adventure formats steeping in local connotations reign supreme
4 1. Real money gaming 2. Average revenue per paying user

Gaming is a sunrise sector in India, growing faster than most media
sub-sectors
Revenue 9.5
MARKET
OVERVIEW
(2020)
in $Bn
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING
THE INDIAN
GAMER
3.0 2.9
1.9 1.8 1.5 1.0
REALIZING
THE
0.5
OPPORTUNITY
Television Books Newspapers Social & Gaming (mobile OTT Video Cinema & Home Audio
INSPIRATIONS:
WHAT IT
& Magazines Online Media and non mobile) Entertainment2
TAKES TO WIN
2018-19
CAGR %
4% 9% 1% 26% 37% 61% 10% 4%
2019-20
CAGR %
-5% 13% -31% 11% 39% 26% -62% -15%
1. Gaming revenue includes console, PC and mobile gaming 2. Highly negatively impacted due to COVID
5 Source: Industry experts, Magna Global, PQ Media, Ovum, NewZoo, BCG Analysis
Gaming in India smaller than US, China but growing rapidly on the
back of "mobile first" phenomenon
MARKET
OVERVIEW
EVOLUTION OF
India US China
THE INDIAN
GAMING
ECOSYSTEM
CAGR of Gaming1 market in the country (2017-20) 38% 10% 8%
DECODING
THE INDIAN
GAMER
Gaming1 market in the country as % of Global gaming

REALIZING 1% 23% 26%
THE
OPPORTUNITY
market (2020)
INSPIRATIONS:
WHAT IT $1.8 > $40 > $45
TAKES TO WIN
Gaming1 market size in the country (2020) Bn
Bn Bn
Mobile Gaming as % of Gaming market in the country (2020) ~86% ~28% ~59%
Mobile gaming in India is Console is largest PC is second largest

$1.5Bn today, expected to segment of gaming segment of gaming
reach $5Bn+ by 2025 market in US (55-60%) market in China (~40%)
1. Including console, PC and mobile gaming

6 Source: Industry experts, Magna Global, PQ Media, Ovum, NewZoo, BCG Analysis
Massive opportunity for mobile gaming to expand in India
Headroom for growth across key drivers: availability, adoption and monetization
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
GAMING
AVAILABILITY ADOPTION MONETIZATION
ECOSYSTEM Internet connected Mobile gamers1 as % of Mobile gamer avg. annual spend2
population % (2020) population (2020) (PPP adjusted for 2020)
DECODING
THE INDIAN
GAMER
India 46% 22% $3-103

REALIZING
THE
OPPORTUNITY
INSPIRATIONS:
WHAT IT
China 60% 45% $57-663
TAKES TO WIN
USA 89% 52% $73-77
Expected to reach 62% by 2025 led Monetization in very nascent stages e.g. India
by increasing access to high speed accounted for ~25% of PUBG downloads, but
and cheap mobile internet in India contributes to <5% of their global revenue
1. Defined as a person who plays at least one mobile game 2. Does not include RMG 3. Avg annual spend without PPP adjustment for India is 1-3$ and for China is 35-40$
7 Source: Industry experts, NewZoo, F&S, EIU, Forrester Analytics, BCG analysis
Gaming in India has been catalyzed by better smartphones,
increased internet access, popular titles, influencers, and COVID
MARKET
OVERVIEW
Indians have access to
EVOLUTION OF
THE INDIAN
better games than ever Increased marketing and
GAMING
ECOSYSTEM
Prior to its ban, PubG Mobile had influencers are driving
50Mn MAUs in India
DECODING
THE INDIAN
… with cheaper, faster and discovery of games
Indian games and platforms such as
GAMER
better internet quality Ludo King, Dream11, and MPL have
E.g. Dream11 is the official sponsor of
the IPL and MPL sponsors the Indian
REALIZING 46% internet users connected on avg. ~100Mn+ downloads
THE cricket team kit
OPPORTUNITY speed of 12Mbps
17+ Indian gaming influencers have
Avg. monthly data usage per user in 1Mn+ followers on YouTube
INSPIRATIONS:
WHAT IT
TAKES TO WIN
India is 14.6GB vs 11GB for US
Indians have more

gaming friendly phones
Avg. household has 2 smartphones Spike in digital adoption
The RAM of smartphones has
during the pandemic
increased by 3-4x in the past five Overall spike in new adopters for
years, enabling more advanced digital entertainment
gaming
Online gaming provides much-
needed social interaction
8
3 key axes define gaming landscape LEGEND
Size of bubble denotes relative share today on the axis
Green color denotes higher growth outlook expected
MARKET
OVERVIEW
SINGLE PLAYER MULTIPLAYER
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
ENGAGEMENT
DECODING
THE INDIAN
GAMER
Multiplayer gamers, on avg. spend 2-3x more
than single player gamers.
Higher multiplayer interaction seen in Game IP also monetized through people
REALIZING
THE
action and strategy type games engaging as "spectators"
OPPORTUNITY
INSPIRATIONS:
WHAT IT
TAKES TO WIN
ACTION
CARD & CASINO
& ADVENTURE
STRATEGY BOARD
SPORTS CASUAL USER PAID AD REVENUE
GENRE MONETIZATION
IAPs are more viable in complicated

action or strategy type games where
Source: App Annie, industry experts,
users are more invested
9 BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, BCG analysis
Engagement: Multiplayer sees higher time spent
MARKET
OVERVIEW
I got bored of playing Candy Time flies when I’m gaming with my friends. PUBG is
Crush alone after a while not just a way for us to have fun and compete. It’s also
EVOLUTION OF
THE INDIAN where we chill and hangout after school
GAMING
─ Former Candy Crush Player ─ PUBG Player
ECOSYSTEM
Average Time1
DECODING
THE INDIAN
1,600
GAMER
1,400
REALIZING
THE 1,200 Free Fire
OPPORTUNITY
Rise of Empire PUBG
1,000
INSPIRATIONS:
eFootball PES 2020 Clash of Clans
WHAT IT 800
TAKES TO WIN
Candy Coin Master Teen Patti
600 Last Shelter: Survival Gold
Crush Saga Call of Duty
8 Ball Pool
400 Lords Mobile Teen Patti
Gardenscapes Carrom Ludo King
200
Homescapes Pool Ultimate Teen Patti
0
Low Medium High
Either single or interaction very limited to MULTIPLAYER INTERACTION2
viewing relative positions on dashboards
Action & adventure Casual Strategy Sports Card and Casino Board
1. Average time per user per month (mins) 2.Scoring based on popular game modes and number of simultaneous players
10 Source: AppAnnie, Internet search, industry experts, BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, BCG Analysis
Genre: Action and adventure, strategy dominate with local games
from other genres breaking into top games
MARKET
OVERVIEW
Revenue1 skewed towards top apps Strategy, casual and board games breaking in
EVOLUTION OF
THE INDIAN
top games
GAMING
ECOSYSTEM
90% User paid revenue comes from the top 20 apps1
Top 20 games by split of genre
DECODING
THE INDIAN
GAMER
KEY
Board 5%
10% INSIGHTS
LUDO King Carrom Pool
5%
REALIZING
THE
Top apps revenue1mix skewed Sports
10% 8 Ball Pool eFootball PES 2020
OPPORTUNITY
on top genre Card and 20%
casino Teen Ultimate Teen Patti
15%
INSPIRATIONS: Patti Teen Patti Gold
WHAT IT
TAKES TO WIN 35% Revenue from top 20 apps is from action and
adventure genre Casual 20%
Coin Candy Gardenscapes
20%
Master Crush Saga
Lords Rise of
Strategy 30% Mobile Empire
Flux in top apps, new entrants breaking in regularly 30%
Mobile Clash of Last Shelter:
Legends Clans Survival
Action and
5 or 6 New apps break in to the top 20 apps every adventure
20%
15%
PUBG Call of Garena:
Mobile Duty Freefire
year (2017-20)
2017 2020
1. Only user paid revenue for apps available on app stores, does not include ad revenue or RMG
11 Source: App Annie, industry experts, press search
Genre mix different vs. China: China growth story led by action
and adventure steeped in local cultural themes
MARKET
OVERVIEW
Genre breakdown among top 20 grossing games in India and China
KEY
India China
EVOLUTION OF
THE INDIAN
GAMING
INSIGHTS
ECOSYSTEM 5% 10% 5% 5%
5% 10% 5%
10%
DECODING
20%
THE INDIAN
GAMER
15% 30% 14 out of top 20 games
20%
20%
80% by MAU in China are
REALIZING
THE 20% 15% developed by local
OPPORTUNITY
50% developers vs. just 1
30% 30%
INSPIRATIONS:
WHAT IT 5% 10%
game in India
TAKES TO WIN
(LudoKing)
Racing Sports Board Card and casino Casual Action and adventure Strategy
Tencent and NetEase
acquire rights to
China had a gradual learning curve from locally making simple board games global IP and localize
to the complex games of today. Both developers and gamers have gradually them for Chinese
evolved. On the other hand, India has imported complex games and skipped users via content,
the learning curve. language and
─ Chinese gaming industry expert monetization
12
Monetization: Real money gaming largest constituent of revenue
pool driven by higher user paying propensity
MARKET Revenue1 (2020, $Bn)
OVERVIEW 1.5Bn
15-20%
EVOLUTION OF
20%
THE INDIAN
GAMING
Paying users 1.2Bn
ECOSYSTEM
DECODING
THE INDIAN
GAMER
53%
REALIZING
THE
OPPORTUNITY
7-8%
Paying users
INSPIRATIONS:
WHAT IT
TAKES TO WIN
27%
IAP + Paid apps RMG User paid total Ad revenue Mobile Gaming (India)
Companies innovating to increase Smaller share but due to revenue

Highly skewed: 90% user paid share of user payments -
expected to increase in relative skew, most non-RMG games
revenue comes from top 20 Apps1
share over the next 2-3 years significantly depend on ads today
User paid B2B revenue
1. Only user paid revenue for apps available on app stores, does not include ad revenue or RMG
13 Source: App Annie, industry experts, BCG Analysis
Various learnings being adopted to enhance user monetization
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
DECODING
THE INDIAN
In-game product variety
and perception of payers
GAMER
REALIZING
Wider suite of Cosmetic purchases serve as
payment options
THE
OPPORTUNITY
popular route, especially
Games have seen rise in when coupled with social
INSPIRATIONS:
WHAT IT
TAKES TO WIN payments with the
Sachet pricing perception of payers
introduction of UPI and Extremely byte-sized options to
payment wallets (vs. only enhance trials by "never- People pay to get rare items
credit cards) spenders" that they can show off in-
game
Some games have introduced
options starting at ₹1-10 and
Paytm Amazon Pay
have seen great results
PhonePe GPay
14 Source: Industry experts, Google report 2020, BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India, press search
CONTENTS
TABLE of


GAMING TO WIN
ECOSYSTEM
15
Mix of homegrown and global players competing in different plays
across the value chain
NON EXHAUSTIVE
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM Enablers Content development Marketing Distribution Consumption Interfaces
DECODING
THE INDIAN
GAMER 1 3 6 10
GAME TECH INDEPENDENT DEVELOPERS GAMING PLATFORMS PAYMENT
REALIZING Lucid Labs Xigma Games MPL: Mobile Paytm
THE UNREAL WINZO ROBLOX STADIA GPay Paytm
OPPORTUNITY Unity Premier League First Games
Engine Frostwood Underdogs
Interactive Studio LLP
INSPIRATIONS:
WHAT IT
TAKES TO WIN
2 4 8 11
OTHER IP OWNERS STUDIOS AND PUBLISHERS APP STORES DEVICES
Krafton Game EPIC Google Play

Gametion Ctro Dream11 Gameskraft
Union Vivo Samsung
Games Store GAMERS
Lucasfilm Ltd FIFA Games 24 Tencent IOS App App
King Ubisoft Moonfrog
Seven Games Steam Store Bazaar Backbone Mi
5 7 9 12
ESPORTS TEAMS AD NETWORKS ESPORTS LEAGUES SOCIAL
YouTube Facebook
Audience
Google NODWIN Gaming Gaming
TSM Team Team Finatic Network by Inmobi ESL India
AdMob Gaming
Facebook Discord
LEGEND: ARCHETYPES OF COMPANIES IN THE GAMING ECOSYSTEM
16 Source: Industry experts, press search

5 key trends in the Indian mobile gaming market
01 Increased focus on familiar content, along with visual and voice features are helping onboard
MARKET
OVERVIEW
new gamers and driving higher engagement

EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
India emerging as talent hub - for India and for the world: larger talent pool with # gaming
DECODING
THE INDIAN
GAMER 02 companies having gone up >10x over last decade. Early investments by international studios
translating to talent proliferation now
REALIZING
THE
OPPORTUNITY
INSPIRATIONS:
WHAT IT
TAKES TO WIN
03 Influencer-driven user generated content, livestreaming and the nascent but growing ~$100Mn
esports industry are driving gaming adoption and higher engagement
04 Gaming platforms emerging - attracting user and investor attention: proposition of diverse
games as a one stop shop
05 Investors are actively scouting and shaping space: increased early-stage activity with new highs
in terms of $s invested (~33% of all gaming funding came in 2021Q1)
17
Familiarity in content and live communication features attract
new gamers and simplify onboarding
MARKET
OVERVIEW
A key driver of PUBG's success in India is its This behavior is also seen among
voice chat function in the app, which allows popular PUBG streamers, who often
EVOLUTION OF
THE INDIAN PUBG
GAMING
ECOSYSTEM gamers to communicate in real time in their stream in local languages like Hindi
language of choice and Tamil
DECODING
THE INDIAN
GAMER
REALIZING
THE
OPPORTUNITY
LudoKing has grown rapidly because:

INSPIRATIONS:
WHAT IT • Indians are already familiar with the board Like Ludo King in India, Happy
LUDO Mahjong and Chinese Chess in China
TAKES TO WIN
game
King • Visual tutorials made the mobile game easy are mobile avatars of popular offline
and intuitive board games
Indian gamers are often unwilling to set their device settings to non-English. Thus, when there is reduced
reliance on text e.g., voice chats or visual tutorials, it helps in adoption (breaking language barrier)
─ Gaming industry expert
18 Source: News articles, industry experts, press search

Talent begets talent: international studios have groomed Indian
developers, who have in turn gone on to start their own companies
MARKET
15,000+
OVERVIEW
International studios such as EA, Ubisoft and Zynga had set

EVOLUTION OF
THE INDIAN
GAMING
Game developers up game development centers in India in the early 2010’s
ECOSYSTEM
in India
DECODING
THE INDIAN
GAMER
REALIZING
Total number of gaming companies in India Select examples of ex-Zynga founders
THE
OPPORTUNITY
+10x MPL Valued at $950Mn within 3 years of launch

INSPIRATIONS:
WHAT IT
TAKES TO WIN 275+
PLAYSIMPLE Acquired for $360Mn by Swedish giant MTG
Moonfrog Acquired for $100Mn by Stillfront
Bombay Play Raised $2.5Mn from Lumikai, Leo Capital

25
Hypernova Raised $1Mn+ from Kae Capital, Graph Ventures
2010 2020 Interactive
19 Source: App Annie, news articles, industry experts, press search

Livestreaming is changing the gaming landscape – from
consumption to distribution and beyond
MARKET
100Mn+ MAU’s on YouTube Gaming, Changing distribution: AmongUs hit Aided by new ways of monetization; top
OVERVIEW
explosive engagement for streamers 21Mn MAU organically via streamers streamers making >$1Mn a year
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM No. of YouTube subscribers of top AmongUs Android MAUs in India Big Youtubers are making 50-60 lakhs
gaming vs. other creators (Mn) ($65-80k USD) a month from YouTube
DECODING
THE INDIAN
alone. Brand partnerships are over and
GAMER
CarryMinati 31.3 above that.
20.92 ─ Head of Talent Management Agency
REALIZING Total Gaming 26.6
THE
OPPORTUNITY
14.05 15.05
10.13
Ashish Chanchalani 25.6 YouTube's membership subscription platform
INSPIRATIONS: 0.03 0.56
WHAT IT Amit Bhadana 23.3
TAKES TO WIN
Jul Aug Sep Oct Nov Dec
Technical Guruji 21.5
BBK Vines 20.7
Techno Gamer 18.9

YouTube’s tipping platform ‘Superchat’
AS Gaming 12.7
Lokesh Gamer 11.6
Desi Gamers 10.9
Non-gaming creators Gaming creators
20 Source: Subscribers as of Jul-2021 – YouTube; Industry experts, AppAnnie, news articles, BCG analysis
Esports, though relatively nascent, is primed to scale as more
mid-core and hard-core titles find adoption in India
MARKET
OVERVIEW Global esports outfits like TSM and Fnatic have
Esports Revenue (2020, $Mn) TSM setup India specific teams to recruit local players
EVOLUTION OF
THE INDIAN and compete in regional tournaments
GAMING
ECOSYSTEM
64% 94% 6% 97Mn
DECODING
THE INDIAN
Touted players like Mortal, Scout and Owais are
GAMER
PUBG building large fanfare priming them to be the
superstars for the next generation
REALIZING
THE
18%
OPPORTUNITY
12%
Leading publishers hosting big esports
INSPIRATIONS:
WHAT IT
TAKES TO WIN Publisher Media Sponsorship B2B Tickets and Total
Freefire tournaments with prize pools > $100K USD
fees rights Total merchandise
India esports audience lags global peers – 17% of

NODWIN streaming audience watch esports in India vs 27%
B2B revenue User paid
Gaming globally; expected to rise as formal tournament
organizers such as Nodwin educate audiences
Emerging opportunity in building school & college

Nascent but fast growing ~$100Mn esports market is
increasing the life span of games – competitive
PlayVS esports league; 10,000+ schools participate in
tournaments run for 5-10 years for some games PlayVS (US based startup) leagues in N. America
21 Source: Industry experts, Newzoo, F&S, news articles, press search

Gaming platforms are attractive for users and investors because
they are diversified across titles and genres
MARKET
OVERVIEW
Investors are bullish on gaming platforms Platforms offer games across genres and
EVOLUTION OF because they mitigate the hits-driven nature of formats such as casual, sports, fantasy, 1-
THE INDIAN
GAMING
ECOSYSTEM games. Such platforms accounted for over 88% of 1 battles, tournaments etc.
DECODING
all VC funding in gaming in 2020
THE INDIAN
GAMER
GAMING FUNDING IN 2020 ($Mn) MPL >70Mn users reported in 20201

REALIZING
THE
OPPORTUNITY
364 48
INSPIRATIONS:
WHAT IT
WINZO >20Mn users as of April 20202
TAKES TO WIN
Paytm First
Games
>70Mn users as of Dec 20192
412
There are numerous titles, giving something

for every context for a gamer, resulting in both
more # of players and more usage
Gaming platforms Others Total
1. Company interview 2. Secondary research

22 Source: App Annie, news articles, industry experts, press search
Investor activity booming: gaming is the next big frontier in
consumer
MARKET
549
OVERVIEW
Total funding raised ($Mn)

+38% 412
EVOLUTION OF
THE INDIAN
GAMING
176 157 175
ECOSYSTEM
42 45 53 34
DECODING
THE INDIAN
GAMER 2010-13 2014 2015 2016 2017 2018 2019 2020 2021 Q1
REALIZING
THE
OPPORTUNITY
Active gaming investors and key investments Emerging strategic and M&A activity (2021)
INSPIRATIONS:
WHAT IT
TAKES TO WIN
Sequoia MPL Moonfrog Rheo Octro Target Strategic Funding Amount Type of deal
Capital India
Playsimple MTG $360Mn M&A
Kalaari capital Dream11 WINZO
Stillfront
Lumikai LOCO Bombay Play eloelo Moonfrog $100Mn M&A
Group
Accel Get MEGA Mech Mocha NODWIN Gaming Krafton $22.5Mn Strategic
Elevation Playsimple Turnip LOCO Krafton $9Mn Strategic
*not exhaustive
23 Source: Tracxn, Pitchbook, industry experts, press search

CONTENTS
TABLE of


GAMING TO WIN
ECOSYSTEM
24
KEY CONSUMER INSIGHTS
Many faces to one individual

01
MARKET
OVERVIEW
Choice of games context oriented with different drivers. Limited correlation of factors like
EVOLUTION OF
demographics to the gamer archetype
THE INDIAN
GAMING
ECOSYSTEM
Game discovery continues to be an unmet need
DECODING
THE INDIAN
GAMER 02 Discovery continues to be a pain point with gamers seeking more personalized game recommendations
(Gamers today discover games largely through word-of-mouth, app stores or social media)
REALIZING
Rise of women gamers

THE
OPPORTUNITY
INSPIRATIONS:
WHAT IT
TAKES TO WIN
03 Increasing adoption by women gamers albeit in low engagement archetypes (higher engagement
archetypes continue to be male dominated) – helps push overall maturity curve for gaming in India
Gaming is social; more players induces competition and loosened purse strings
04 Close to half the gamers prefer to play games with friends and family as a means of socializing; high
engagement gamer archetypes tend to spend more across monetization preferences
Gaming is no longer perceived as a 'waste of time'

05 Gamers are seeing gaming in a positive light, and are likely to use gaming as a means of therapy as
well as for educational purposes
25
Indian gamer: Same individual, multiple contexts
Not defined by demographics – same individual can shuffle between multiple 'why' and 'how' contexts
MARKET
OVERVIEW CONTEXT CONSUMER NEEDS
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM AD-HOC PROACTIVE
Distract oneself/ enhance Curious about trying out
OCCASION
DECODING
THE INDIAN mood and feelings/ trending/ popular games,
GAMER
unwind and relax actively seeking to play
REALIZING
THE
OPPORTUNITY
LOW MODERATE HIGH

INSPIRATIONS:
WHAT IT
TAKES TO WIN CATEGORY Prefer easy to play, Prefer games of Prefer challenging
low commitment one's choice/ genre games, with high
INVOLVEMENT
games with moderate elements of action

commitment and competition
SOLO GROUP
GROUP Playing game of one's Playing group games to
COMPOSITION choice to pass time, relax socialize, bond and
or indulge compete with friends
26 Source: BCG Consumer Survey, 2021; N= ~3,200 respondents across 21 cities in India
6 distinct contexts define significant part of active Indian gamer's life
MARKET
OVERVIEW
A
D
EVOLUTION OF -
THE INDIAN
H WINDOW SHOPPING
GAMING
ECOSYSTEM O No specific loyalty or reason to play a game - will play out of boredom
C
DECODING O
THE INDIAN
GAMER C
C S
O
REALIZING
THE
A L TIME CRUSHING INDULGING
OPPORTUNITY
S P O Gaming as a filler activity in known windows of time, Gaming to indulge and treat oneself, often resulting in feelings
I R often to simply pass time; can be mindlessly addictive of reward, self-gratification and freedom
O
INSPIRATIONS:
WHAT IT O A
TAKES TO WIN
N C
T G
I R
V O SOCIALIZING PRIZEWINNING DIEHARD GAMING
E U Semi-competitive gaming with friends Playing with the goal of winning Intense, competitive gaming in
P
1 to catch-up, socialize and have fun money through skills-based games "live to play" mode
Low Moderate High

CATEGORY INVOLVEMENT
++ Inactive / moderately active gamers i.e. users who have downloaded games but play at frequency of >2 weeks 2
1. includes friends and strangers, both in person and virtually

2. was considered a screener and treated outside of the survey scope
6 distinct personas of active mobile gamers in India
MARKET
OVERVIEW 28% 22% 13%
A
D
EVOLUTION OF -
THE INDIAN
GAMING
ECOSYSTEM
H
O
WINDOW SHOPPER
C
DECODING O 19% 19% 12% 9% 8% 5%
THE INDIAN
GAMER C
C S
O
REALIZING
THE
A L TIME CRUSHER INDULGER
OPPORTUNITY
S P O
I R
O
INSPIRATIONS:
WHAT IT O A
C 16% 17% 16% 12% 14% 40% 15% 20% 14%
N
TAKES TO WIN
T G
I R
V O
E U SOCIALIZER PRIZEWINNER DIEHARD GAMER
P
1
Low Moderate High

CATEGORY INVOLVEMENT
++ Inactive / moderately active gamers i.e. users who have downloaded games but play at frequency of >2 weeks 2
SEGMENT SHARE VOLUME SHARE VALUE SHARE

1. includes friends and strangers, both in person and virtually X% (% of total occasions/ respondents X% (% of total gaming hours belonging X% (% of total spends belonging to
2. was considered a screener and treated outside of the survey scope belonging to Consumer Segment) to Consumer Segment) Consumer Segment)
Demographics not a key distinguishing feature between segments
While few segments are over / under indexed, trend largely secular
MARKET
OVERVIEW
WINDOW TIME DIEHARD PRIZE

INDULGER SOCIALIZER
EVOLUTION OF CONSUMER SEGMENTS SHOPPER CRUSHER GAMER WINNER
THE INDIAN
GAMING
ECOSYSTEM
47% 53% 52% 48% 49% 51% 71% 29% 61% 39% 75% 25%
DECODING
THE INDIAN
GAMER Gender
REALIZING
THE 15-24 years
OPPORTUNITY
25 20 17 15 17 18
27 31 32
44 42 41
25-40 years % % % % % %
INSPIRATIONS: Age
WHAT IT 40 43 42
TAKES TO WIN Group 41-60 years 48 49 50
3-5 lac
24 22 25 19
31 30 33 32 34 30
42 43
5-10 lac % % % % % %
Income 36 38
>10 lac 39 43 43 36
Businessowner,
Housewife Not a differentiator Student Student Not a differentiator
Self-employed
Profession
Under-indexed i.e., less Over-indexed i.e., greater

than 0.8X index to total than 1.2X index to total
Needs, preferences and gaming habits vary significantly
MARKET
OVERVIEW
VARIABLES WINDOW SHOPPER TIME CRUSHER INDULGER DIEHARD GAMER SOCIALIZER PRIZEWINNER
EVOLUTION OF
THE INDIAN Passing time/ Avoid
Avoid boredom/ stay Self-indulgence Competition spirit, Bond and connect
GAMING
Key needs boredom, Quality time Earn money
ECOSYSTEM up-to-date Quick -break feel energized Fit in with groups
alone
DECODING
THE INDIAN
GAMER Action, Action
Adventure, Casino, Fantasy
Preferred genre Board, Casual Adventure, Adventure, Racing, Action, Board
Casual, Word sports,
REALIZING
Casual Sports, Strategy
.
THE
OPPORTUNITY
PUBG WINZO
Type of games LUDO King Temple run Hitman Sniper Hitman Sniper
INSPIRATIONS: Need for Speed Teen Patti
WHAT IT (exemplar; Subway Subway Surfers Temple run 2 PUBG
TAKES TO WIN FIFA2020 Junglee
Non-exhaustive) Surfers WORD collect Subway Surfers LUDO King
Clash of clans Dream11
Average hours
12 16 14 21 17 19
per week
Group Alone, virtual with In person / virtual Virtual with friends /

Alone Alone Virtual with friends
composition strangers with friends strangers
Intensity of
game
Decoding the segments: How they play and pay
Group gamers contribute~70% of value pool
MARKET
OVERVIEW
VARIABLES WINDOW SHOPPER TIME CRUSHER INDULGER DIEHARD GAMER SOCIALIZER PRIZEWINNER
EVOLUTION OF
THE INDIAN
Average hours
GAMING
ECOSYSTEM per week 12.5 15.5 14.2 21.2 17.2 19.2
DECODING
THE INDIAN Value share 13% 12% 5% 14% 16% 40%
GAMER
REALIZING
THE
OPPORTUNITY
Paid users1 22% 30% 31% 47% 44% 68%
INSPIRATIONS:
Average spend
WHAT IT
TAKES TO WIN
per user ($)
$1 - 1.5 $2 - 2.5 $1.5 - 2 $2.5 - 3 $3 – 3.5 $10 - 11
Average spend
per paid user ($)
$6 - 6.5 $6 - 6.5 $5.5 - 6 $6 – 6.5 $7 – 7.5 $15 -16
Willingness to pay
High interaction segments are the biggest revenue

generators
1. % of gamers who pay for mobile games out Under-indexed i.e., less Over-indexed i.e., greater
of all gamers playing at least once in 2 weeks than 0.8X index to total than 1.2X index to total
Example: 'Window Shopper'
28% 22% 13%

MARKET
OVERVIEW Window Shopper PROFILE
EVOLUTION OF
"I think of games as a means to pass the time when I am bored. I AGE MEDIA PROFILE
THE INDIAN
GAMING don't think paying for it is worth it." 48%
ECOSYSTEM Average hours per week 12
27% 25%
% of paid users 22%
DECODING Average spend per month $1.25
THE INDIAN 15- 24 Years 25 - 40 Years 41 – 60 Years
GAMER
CONSUMPTION OCCASIONS
Play games at home mostly alone but Play games at ad hoc times during GENDER PREFERRED MODEL
REALIZING
THE 47%
OPPORTUNITY sometimes with friends or family short breaks during the day Male Ads (no payment)
12 10
IAP+Paid apps
53%
INSPIRATIONS:
Play a few games before going to bed Play games to destress after a tiring Female
RMG 79
WHAT IT
TAKES TO WIN
day
TOP INSTALLATION KEY INSIGHTS

DRIVERS TOP PAIN POINTS OPPORTUNITIES
• Their biggest motivation to play is to pass time or take quick
Easy to play Device issues (battery Made for / by unplanned breaks
Good game reviews life, processing speed) India games
• This segment has highest gender skew towards females as
Challenging to play Too many ads well as highest share of 41-60 years age group
Recommended by friends App issues (slow, crashes • This segment focuses the most on "ease of play"
and bugs, disk space) • Weak monetization tilt with lowest share of paying users and
Good game graphics
avg. monthly spend across segments
Less than 0.8X Greater than 1.2X

index to total index to total
Example: 'Time Crusher' segment
19% 19% 12%

MARKET
OVERVIEW Time Crusher PROFILE
EVOLUTION OF
"Gaming helps me relax after a long day of work. It is a good PREFERRED COMPANY MEDIA PROFILE
THE INDIAN
GAMING distraction on the long ride back home from work"
ECOSYSTEM 23 Average hours per week 16
Alone
% of paid users 30%
With others1 77
THE INDIAN
GAMER
Play games alone at home or Play games during commute or when PREFERRED PLACE PREFERRED MODEL
REALIZING
THE
OPPORTUNITY sometimes online with friends/family waiting for something At home 9
11 Ads (no payment) 15
Commute IAP+Paid apps 17
INSPIRATIONS:
Play a few games before going to bed Play games to destress after a tiring Other
80 RMG
68
WHAT IT
TAKES TO WIN
day or to connect with friends/family

• Their biggest motivation to play is to de-stress or to spend
Easy to play Device issues (battery life, Made for / by India some "me-time"
processing speed) games • This segment has the largest share of people preferring to
Challenging to play
Poor audio and video Inclined towards games play alone
Good game graphics
recommended by • Only segment to spend considerable amount of gaming time
Good game reviews App issues (slow, crashes
influencers during commute
and bugs, disk space)
Recommended by friends

1. "With others" includes friends and strangers, both in person and virtually index to total index to total
Example: 'Indulger' segment
9% 8% 5%
MARKET
OVERVIEW Indulger PROFILE
EVOLUTION OF
"I love gaming and use this as a reward to positively help me AGE MEDIA PROFILE
THE INDIAN
GAMING focus on other activities. I set goals like 2 hours of studying 44% 40% Average hours per week 14
ECOSYSTEM 16%
before allowing myself to play games for 15 mins" % of paid users 43%
Average spend per month $1.75
DECODING 15- 24 Years 25 - 40 Years 41 – 60 Years
THE INDIAN
GAMER
CONSUMPTION OCCASIONS PREFERRED PLACE PREFERRED MODEL
REALIZING Play games alone at school or work for Mostly play alone but sometimes At home 13 Ads (no payment) 16
THE 17
OPPORTUNITY a short break online with friends / family At work/school IAP+Paid apps
30 54
70
Other RMG
INSPIRATIONS:
Play to destress or to spend quality X Axis
WHAT IT alone time
TAKES TO WIN
INCOME Over-represented in low-income

• This segment usually plays games at work or at school or
Easy to play Device issues (battery Prefer Esports over college
Recommended by friends life, processing speed) traditional sports
• This segment has the greatest skew towards 15-24 age group
Good game reviews App issues (slow, crashes Inclination towards user
and bugs, disk space) generated content • It is also overrepresented in the lower income groups
Good game graphics
Challenging to play Poor audio and video Games for therapy /
education

Example: 'Diehard Gamer' segment
15% 20% 14%

MARKET
OVERVIEW Diehard Gamer PROFILE
EVOLUTION OF
"Gaming is the only thing I do in my free time. I always play with AGE MEDIA PROFILE
THE INDIAN
GAMING my friends, but also spend some time practicing on my own to 71%
ECOSYSTEM Male Average hours per week 21
get better and beat my friends" % of paid users 46%
Female 29%
THE INDIAN
GAMER
Play to connect with friends and to Mostly play online with friends, PREFERRED PLACE PREFERRED MODEL
REALIZING
THE
OPPORTUNITY compete with them sometimes alone Ads (no payment) 14
Alone 32
IAP+Paid apps 52
INSPIRATIONS:
Play to feel energized Usually play after getting back from With others1 68
RMG
34
WHAT IT
TAKES TO WIN
school / work

• This segment plays to compete
Popularity / Hype Device issues (battery Likely to continue
life, processing speed) playing the same game • They spend the highest average time playing games across
Recommended by friends for 2-3 years all segments
App issues (slow, crashes
Challenging to play and bugs, disk space) Games for therapy / • Popularity and hype behind a game induces them to
education download
Good game graphics Too many ads

Example: 'Socializer' segment
16% 17% 16%

MARKET
OVERVIEW Socializer PROFILE
EVOLUTION OF
"I started playing games during lockdown when some friends PREFERRED PLACE MEDIA PROFILE
THE INDIAN
GAMING suggested we play online for a get together. Since then we 13 Average hours per week 17
ECOSYSTEM At Home
routinely get together online to play games" Out with friends 22 % of paid users 44%
65
DECODING Other Average spend1 per month $3.25
THE INDIAN
GAMER
Play to connect with friends and Almost always play with others, rarely PREFERRED COMPANY PREFERRED MODEL
REALIZING
THE
OPPORTUNITY to socialize alone 15 Ads (no payment) 21
Alone
IAP+Paid apps 52
INSPIRATIONS:
Play to fit in with the group, not Usually play when outside with friends, With others1
85 RMG
27
WHAT IT
TAKES TO WIN
feel left out and not at home via online gaming

DRIVERS TOP PAIN POINTS OPPORTUNITIES • Their biggest motivation to play is to connect with friends,
Easy to play Device issues (battery Likely to continue family and co-workers
Good game graphics life, processing speed) playing the same game • Equally prefers playing in-person or virtually with friends
for 2-3 years
Recommended by Boring, lack of new • Inviting friends and sharing / keeping track of progress are
friends content and updates Games for therapy /
the most popular social features
education
Related to favorite sport Complex and difficult • Among the highest acceptance for RMG model of payments
games Socializing via games
across all segments
even post Covid-19

Example: 'Prizewinner' segment
12% 14% 40%

MARKET
OVERVIEW PRIZEWINNERS PROFILE
EVOLUTION OF
"I only play games because I can also make some money with INCOME MEDIA PROFILE
THE INDIAN
GAMING my skill. It's not a lot but the thrill of earning money is fun."
ECOSYSTEM Average hours per week 19
Over-represented in high
income % of paid users 68%
THE INDIAN
GAMER
Play games at home with friends and Plays games that increase chances of GENDER PREFERRED MODEL
REALIZING
THE
OPPORTUNITY family winning money Male 75% Ads (no payment) 24
IAP+Paid apps 52
INSPIRATIONS:
Discovers games from friends and social Will play a few games before going to Female 25% RMG 24
WHAT IT
TAKES TO WIN
media bed

• Their biggest motivation to play is to earn money using their
Challenging to play Too many ads User generated content skill and knowledge
Good game reviews Device issues (battery Games recommended by • This segment has the highest % of paying users and highest
Popular with friends life, processing speed) influencers avg. spend per month
Good game graphics App issues (slow, crashes Made for / by India • This segment also has the highest gender skew towards males
and bugs, disk space) games
Recommended by • Mostly discover games through word of mouth or social media
friends Invest in gaming
accessories
CONTENTS
TABLE of


GAMING TO WIN
ECOSYSTEM
38
6 imperatives to drive the next wave of growth
MARKET
OVERVIEW
ENHANCE
DISCOVERY
1 Casual games, free to play games and influencers are good hooks to onboard first-
time gamers
EVOLUTION OF
2
THE INDIAN
GAMING
ECOSYSTEM AND ADOPTION
Game design and mechanics are effective in driving organic discovery and growth
DECODING
THE INDIAN
GAMER
REALIZING
THE
OPPORTUNITY
INSPIRATIONS:
IMPROVE
USAGE AND
3 Genre diversification effective in increasing engagement and addressing churn
WHAT IT
4
TAKES TO WIN
RETENTION Contextual and interactive social experiences are key in driving adoption and
retention for gamers
DRIVE
"ACCEPTABLE"
5 Ads and product placements can be blended seamlessly into the game without
being obtrusive to the gamer
MONETIZATION
6 Localized pricing strategies are extremely effective in converting users to payers
39
ENHANCE DISCOVERY AND ADOPTION
Example: GetMega leverages influencers whilst Candy Crush

rewards users to drive virality in game discovery
Casual games and influencers are Game design and mechanics are effective
MARKET
OVERVIEW
good hooks for first-time gamers in driving organic discovery and growth
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
Get MEGA Candy Crush Saga

DECODING
THE INDIAN
GAMER
REALIZING
THE
OPPORTUNITY
Social real money gaming start-up that allows gamers
WHO THEY A free-to-play casual puzzle game developed and
to play casual and card games with their friends via
INSPIRATIONS:
WHAT IT
TAKES TO WIN
ARE video chat
published by King with a freemium model
Introduced a strong referral

GetMega launched the game using over 200+ YouTube program which gave users rewards
influencers including comedian & content creator for inviting their friends:
WHAT Tanmay Bhat
Gamers are given the option to
THEY DID Influencers explain how to use the app while launching either pay or send requests to their
over the live stream Facebook friends to progress
The campaign itself reportedly onboarded 1Mn+ users within the game
Source: News articles, industry experts, press search

40
IMPROVE USAGE AND RETENTION
Example: MPL provides diversified genres and Clash of Clans

creates a strong multiplayer bond that boosts retention
MARKET Genre diversification effective in Contextual and interactive social
OVERVIEW
improving usage and retention, an experiences are key in driving adoption
EVOLUTION OF
THE INDIAN
advantage for gaming platforms and retention for gamers
GAMING
ECOSYSTEM
MPL: Mobile Premier League Clash of Clans

DECODING
THE INDIAN
GAMER
REALIZING
THE
OPPORTUNITY
WHO THEY Mobile e-sports and real money gaming platform that Fantasy themed freemium strategy game that's multi-
INSPIRATIONS:
WHAT IT
TAKES TO WIN
ARE offers tournament, 1-vs-1 battle and fantasy sport formats player and has a levelized learning curve
The clan system allows shared experiences (clan wars) which leads to
MPL has built a genre agnostic platform attracting top developers
WHAT who create user-friendly games. This allows them to cater to a
bonding and learning among gamers, not available to single players
THEY DID wide variety of gamers Strategy has been to constantly evolve to offer more user-friendly,
consistent and fun online experiences
High proportion of paying users (better than industry average) –
offering a game for every person and occasion allows better Overall high popularity (massive global fan base, esports franchises,
retention and monetization spin off TV show) and high retention (D30 retention is ~25% vs Candy
Crush at 10-12%)
41 Source: App Annie data, news articles, industry experts, press search
DRIVE ACCEPTABLE MONETIZATION
Example: Free Fire maximizes ad and user spend, Ludo King

localizes pricing to optimize monetization for their user bases
MARKET Bridging the gap between advertisers / Localized pricing strategies are
OVERVIEW
sponsors and consumers help increase extremely effective in converting
EVOLUTION OF
THE INDIAN
both ad and user spend users to payers
GAMING
ECOSYSTEM
Freefire LUDO King

DECODING
THE INDIAN
GAMER
REALIZING
THE
OPPORTUNITY
WHO THEY Online-only action-adventure battle royale game Free-to-play modern adaptation of board game Ludo,
INSPIRATIONS:
WHAT IT
TAKES TO WIN
ARE developed by Garena developed by Gametion Technologies
Tailored features that embrace Introduced packs at prices as low as ₹10 to convert
local cultures, particularly in more users to conduct in app purchases
emerging countries like India
WHAT e.g. Introduction of Hrithik
THEY DID Roshan-based character and
rewards as an immersive ad for Ad revenue/in app purchase revenue split went from
the movie War within the game 80:20 to 60:40 after the introduction of new packs
42 Source: News articles, industry experts, press search

CONTENTS
TABLE of


GAMING TO WIN
ECOSYSTEM
43
Nazara: The 22-year diversification journey to a blockbuster IPO
At the back of a stable, profitable biz, Nazara has over the years bet on adjacent opportunities and
MARKET
OVERVIEW leveraged acquisitions in a strategic move towards diversifying to build a network of synergistic companies
EVOLUTION OF
THE INDIAN
Revenue share %
GAMING
ECOSYSTEM
33% Telco Subscription
57%
DECODING
THE INDIAN 8% Freemium
GAMER
89%
34% Esports
REALIZING 14%
THE
OPPORTUNITY
RMG
29% 17%
9% 8% Gamified Learning
INSPIRATIONS:
WHAT IT
Founded 2%
TAKES TO WIN
1999 2018 2019 2020

Acquired NextWave and Acquired AbsoluteSports Acquired Kiddopia to

Nodwin to enter Esports to expand Esports enter Gamified Learning
Scaled profitably segment business segment
in India through IPO, ~$800Mn
telco subscription Diversification further Diversification further Acquired HalaPlay market cap
business supported through $18Mn supported through to expand Esports
investment from ESL $12Mn investment from business further
Gaming SeedFund
44 Source: Nazara IPO prospectus, news articles

Decoding Nazara's strategic choices
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
B2B2C focus GEOGRAPHIC EXPANSION GROWTH BETS

DECODING
THE INDIAN
GAMER
Nazara started before smart Nazara leveraged India Nazara is backing on 4 distinct growth areas:
REALIZING
phones with simple web-based experience to expand into esports, gamified learning, freemium and skill-
THE
OPPORTUNITY games distributed through other emerging economies based real money gaming
telcos with low ARPU
INSPIRATIONS:
Early mover advantage in esports with Nodwin
WHAT IT
TAKES TO WIN This early segment sustained Currently ~25% of Nazara's securing exclusive licensing agreements with top
Nazara for many years and revenue comes from the IP owners like ESL, Krafton
still forms ~30% of the revenue emerging economies in Africa,

and large part of profit pool Middle East, and APAC Kiddopia is their subscription based gamified
(outside India) learning app aimed at 2-6 year old kids
Segment declining in India,
but still profitable in other Freemium segment is a key growth driver. Nazara
emerging markets is attempting to grow international footprint in
freemium segment through recent acquisitions
(e.g. Publishme)
Skill based real money gaming as macro statutory

situation improves in the market
45 Source: Nazara IPO prospectus, news articles, industry experts

MPL: Pioneering the platform concept in India
THE MPL MODEL

MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN A gaming platform
GAMING
ECOSYSTEM
that aggregates a wide The platform keeps
a cut of the pool,
DECODING
variety of games from VS and the winners
THE INDIAN different developers
GAMER Players play against each other, take the rest
putting up as little as ₹3
REALIZING
THE
OPPORTUNITY
INSPIRATIONS:
Overcoming typical challenges for such a model
WHAT IT
TAKES TO WIN
2018 2019 2020 2021
$5Mn $35.5Mn $90Mn $95Mn

funding from funding from funding from funding from
Sequoia Sequoia Capital SIG ventures base CUSTOMER MONETIZATION COMPETITION AND CHEATING
Capital India India + Times + others ventures + For continued
ACQUISITION DIFFERENTIATION An issue most online
others engagement - games face, but the
No presence on With RMG attracting
1Mn users games must be consequences are
app stores and investor interest, MPL
acquired in 1 25Mn+ users 70Mn+ users 81Mn+ users easy to learn and higher for RMG
crowded space, faces more than 30
month (YTD) difficult to master, formats. Anti-fraud
CACs can be high competitors in the
& acquisition requiring market. Companies mechanisms
channels must be continuous must develop games important to
creative development of within the premise maintain trust of the
storylines and keeping them simple to user
iteration play
46 Source: MPL CEO interview, news articles
Decoding MPL's strategic choices
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
Fuel competition to build Levers building liquidity: variety Personalisation and diverse
sports, not games … in games and acquisition.. content to drive retention
GAMING
ECOSYSTEM
DECODING
THE INDIAN
GAMER Real-time cheating and financial MPL maximizes in-game engagement MPL, via ML and optimization
fraud detection algorithms ensure by ensuring players of similar skill levels models learns player preferences,
REALIZING
THE
that MPL provides a fair gameplay lay with each other skill levels and recommends games
OPPORTUNITY
experience to all players to improve player skill and their
chances of winning
INSPIRATIONS:
WHAT IT MPL learns from historic gameplays MPL has built a large top of the funnel Fast launches of games to keep the
TAKES TO WIN
and tournaments to design new game with its wide variety of free to play gamer experience fresh.
levels and tournament formats games and marketing
People don't just want to win; they TV campaigns, signing on Virat Kohli Driving retention via building of
want a challenge: Highest retention (Indian cricketer), IPL teams and Bigg community and engagement
typically seen in players winning half Boss partnership helped top of funnel features such as the audio chat
of the times vs. all the time further
Developing a game is a balance of art and science which brings a lot of risks. We want to fuel competition and
be the platform where the largest global gaming competitions happen.
─ Sai Srinivasan, CEO and Co-Founder, MPL
47 Source: Company interview, news articles

Dream11: Using fantasy sports to make sports more engaging
The Dream11 model

MARKET Key challenges and how
OVERVIEW
Online Fantasy Sports and Sports share a
symbiotic relationship in the digital era, it they are being countered
EVOLUTION OF
THE INDIAN
GAMING
makes fans experience sports in a better
ECOSYSTEM
and deeply engaged manner
─ Harsh Jain, CEO and Co-Founder, Dream11 Maintaining engagement through the year
DECODING
THE INDIAN
GAMER
This format is more event-led vs. simulation of any sport – it merits a case High dependency on cricket; seasonal demand peaks with IPL
for fueling engagement to the actual sport vs fueling gaming addiction Variety: Users are primarily sports fans who will engage
REALIZING
THE
OPPORTUNITY with other sports as well in the absence of IPL season
Volume: The platform hosts 20+ matches/day
INSPIRATIONS:
WHAT IT
TAKES TO WIN
Excitement of competing and 80% of user base
underlying love of sports is believed to participate in
be most crucial factor for D11 users free

Handling competition
Virtually no entry barriers; new entrants every day
Network effects built through strategic choices and first

99%+ users have never won Contests generated through mover advantage is crucial
or lost more than INR10K machine learning algorithms to keep Offering variety of choices also increases user stickiness
net in their lifetime – more customizing on what the users are
an entertainment expense happy to pay for and compete
48 Source: Industry experts, news articles

Decoding Dream11's strategic choices
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
Network effect First mover advantage Winning consumer trust Regulatory leadership
GAMING
ECOSYSTEM
More people = larger A platform to display and Transparent and easy to Dream11 took initiative to
DECODING
THE INDIAN contest = large prizes = leverage superior use product with an open define guardrails for this
GAMER
more people. Easier to knowledge was missing for system on how money is space when nascent in
REALIZING
acquire new users with a sports enthusiasts. flowing in and out was India
THE
OPPORTUNITY growing user base Dream11 moved early to crucial to building trust
capitalize on this unmet Created a self-regulated
INSPIRATIONS:
WHAT IT
The 'daily' nature of need Investing behind a positive industry body with other
TAKES TO WIN
offering increases social media presence and fantasy sports platforms -
engagement and Dream11 made high risk associating with the likes Federation of Indian
stickiness resulting in low early investments in of the NBA or the ICC Fantasy Sports and
churn rates partnerships before the further enhanced industry adopted a charter
space was well defined credibility to follow best practices and
There's also an e.g., partnership with BCCI code of ethics to protect
opportunity to cross-sell consumer and business
other contests helping interests'
them increase their ARPU
49 Source: Industry experts, news articles

Gameskraft: One of India's fastest growing companies
MARKET
OVERVIEW
OVERVIEW
Parent company of
EVOLUTION OF
THE INDIAN
GAMING
RummyCulture and Gamezy RummyCulture
ECOSYSTEM
Launched as a fantasy game
10+ registered 1-1.5 MAUs and First product of GK. Launched in platform in 2019
DECODING
THE INDIAN
Mn base, Mn growing October 2017 Gamezy
GAMER Currently offers three sets of
RMG games for users
REALIZING
Real Money rummy platform.
THE Offers everyday and special
OPPORTUNITY
Players compete putting up as little as tournaments and table pool Fantasy cricket – T20, ODI and test matches
₹1 + multiple tourneys types matches Card games like poker, rummy
INSPIRATIONS:
WHAT IT Casual games like snake, carrom, chess, 8 Ball pool
TAKES TO WIN GK keeps a cut of the pool money (rake
percentage), and winners take the rest
GOVERNMENT USER COMPETITION AND

KEY CHALLENGES RESTRICTIONS RETENTION DIFFERENTIATION
FOR A few states like Andhra, Cost effective retention Highly competitive
GAMESKRAFT Telangana, Kerala have of customers continues market with 30+
banned RMG games to be a challenge companies. Entry of global
companies adding to mix
50 Source: GK Leadership interview, Secondary resources

Decoding Gameskraft's strategic choices
MARKET
OVERVIEW
EVOLUTION OF
THE INDIAN
GAMING
ECOSYSTEM
Leading from the front Focusing on a healthy Striving for differentiation
on technology CAC and ROI in a competitive market
DECODING
THE INDIAN
GAMER
Poor tech stability and payment

CAC and ROI better than
REALIZING uncertainty major issue in the Launched industry-first 2nd
THE
industry averages
OPPORTUNITY
industry Innings and Live Fantasy
features for Gamezy
INSPIRATIONS: No affiliation with 3rd party for
WHAT IT GK set up 4-5 level redundant
TAKES TO WIN
customer acquisition due to poor
infrastructure capabilities and Guinness World Record for
retention rates and high cost
onboarded top-class engineering world's largest online rummy

team tournament
Focused on healthy user margin -
optimized spend on CAC to
Introduced under 30 seconds Added 10 casual games like
achieve this
cash withdrawal for users chess, carrom, Quiz, cricket on
top of fantasy and poker to offer
Rake-backs and cash bonuses to
Differentiated from competition more variety
help reactivate players
by minimizing any tech glitches
51 Source: Company interview, news articles

About the Authors
Vikash Jain Rajan Anandan
Managing Director and Senior Partner Managing Director
BCG New Delhi Sequoia India
[email protected]
Prachi Pawar
Mandeep Kohli Associate
Managing Director and Partner Sequoia India
BCG New Delhi [email protected]
[email protected]
Pushpak Kedia
Wamika Mimani Analyst
Principal Sequoia India
BCG Bangalore [email protected]
[email protected]
Sudhanshu Mishra
Analyst
Sequoia India
[email protected]
Acknowledgments
The authors thank and acknowledge the support provided by Abheek Singhi (Managing Director and Senior Partner, BCG), Arushi Jain (Project Leader,
BCG) Trishla Selarka (Consultant, BCG) and Prithvi Raj Nair (Associate, BCG) in preparing this report.
A special thanks to Jasmin Pithawala and Payal Banerjee for managing the marketing process and to Jamshed Daruwalla, Saroj Singh, Pradeep
Hire, Pavithran NS, Abbasali Asamdi and Seshachalam Marella for their contribution towards design and production of this report.
52
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Mobile Gaming Market Opportunity

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KEY HIGHLIGHTS

Mobile gaming expected to triple to a $5Bn+ market opportunity by 2025

Monetization in non-RMG nascent but trending positively

Familiarity in content, user generated content (e.g., esports), influencers

Consumer research insights point to market evolution

1. Real Money Gaming 2. Average revenue per paying user

MARKET EVOLUTION OF DECODING THE REALIZING THE INSPIRATIONS:

OVERVIEW THE INDIAN INDIAN GAMER OPPORTUNITY WHAT IT TAKES

MARKET EVOLUTION OF DECODING THE REALIZING THE INSPIRATIONS:

OVERVIEW THE INDIAN INDIAN GAMER OPPORTUNITY WHAT IT TAKES

fast (~38% CAGR)

4 1. Real money gaming 2. Average revenue per paying user

Gaming1 market in the country as % of Global gaming

Mobile gaming in India is Console is largest PC is second largest

1. Including console, PC and mobile gaming

India 46% 22% $3-103

USA 89% 52% $73-77

Indians have more

SPORTS CASUAL USER PAID AD REVENUE

IAPs are more viable in complicated

Companies innovating to increase Smaller share but due to revenue

User paid B2B revenue

MARKET EVOLUTION OF DECODING THE REALIZING THE INSPIRATIONS:

OVERVIEW THE INDIAN INDIAN GAMER OPPORTUNITY WHAT IT TAKES

Krafton Game EPIC Google Play

LEGEND: ARCHETYPES OF COMPANIES IN THE GAMING ECOSYSTEM

16 Source: Industry experts, press search

new gamers and driving higher engagement

LudoKing has grown rapidly because:

18 Source: News articles, industry experts, press search

International studios such as EA, Ubisoft and Zynga had set

+10x MPL Valued at $950Mn within 3 years of launch

Moonfrog Acquired for $100Mn by Stillfront

Bombay Play Raised $2.5Mn from Lumikai, Leo Capital

19 Source: App Annie, news articles, industry experts, press search

BBK Vines 20.7

Techno Gamer 18.9

Lokesh Gamer 11.6

Desi Gamers 10.9

Non-gaming creators Gaming creators

India esports audience lags global peers – 17% of

Emerging opportunity in building school & college

21 Source: Industry experts, Newzoo, F&S, news articles, press search

GAMING FUNDING IN 2020 ($Mn) MPL >70Mn users reported in 20201

There are numerous titles, giving something

1. Company interview 2. Secondary research

Total funding raised ($Mn)

Elevation Playsimple Turnip LOCO Krafton $9Mn Strategic

23 Source: Tracxn, Pitchbook, industry experts, press search

MARKET EVOLUTION OF DECODING THE REALIZING THE INSPIRATIONS:

OVERVIEW THE INDIAN INDIAN GAMER OPPORTUNITY WHAT IT TAKES

Many faces to one individual

Rise of women gamers

Gaming is no longer perceived as a 'waste of time'

LOW MODERATE HIGH

games with moderate elements of action

Low Moderate High

1. includes friends and strangers, both in person and virtually

Low Moderate High

SEGMENT SHARE VOLUME SHARE VALUE SHARE