VC firm Lumikai cuts growth projection for India’s real-money gaming segment
Lumikai has slashed its growth projection for India’s real-money gaming (RMG) segment to 5% over next five years from 25% previously, blaming heavy tax liabilities and consolidation for the downgrade.
The share of RMG in the Indian gaming market, which today is nearly 60%, could reduce to 32% by fiscal 2028, said the State of India Gaming FY23 report released by Lumikai.
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“The next set of monetisation and revenue growth in Indian gaming shall come from in-app purchases and ad revenues, mostly through casual and mid-core games,” Justin Keeling, Lumikai’s founding partner, told ET. “The ecosystem is graduating from playing casual games to all kinds of games; people are experimenting with new genres.”
There are over 568 million gamers in India, out of which 25% were paying users. The number of gamers in India grew by 12% compared to last year, while the number of paying users grew by 17%, the Lumikai report said.
“Today, we have 25% of gamers who are paying and playing, and this growth momentum shall accelerate going forward when our supply side is robust with a vast, creative mid-core games portfolio,” Keeling said.
Keeling was speaking on the sidelines of the India Games Developer Conference (IGDC) event in Hyderabad, which is one of India’s largest gaming events.
