India, August 24, 2026: Global gaming investment is entering a new phase. The era of capital chasing growth at any cost is giving way to a market where fundamentals like stronger retention, capital efficiency, and sustainable monetisation matter more. Deal activity has contracted sharply, but the underlying gaming opportunity remains strong and continues to grow.
For India, this reset could mark a shift from funding-led expansion to a more mature investment ecosystem, where companies with real users, differentiated IP, and clear paths to profitability are positioned to attract capital.
India’s Gaming Market
- Crossed the $1 billion revenue mark in 2025, reaching $1.04 billion.
- Grew 14.8% year-on-year (Niko Partners India Player Behavior & Market Insights Report 2026).
- Driven by a large, engaged player base, rising consumer spending, and a growing pipeline of homegrown gaming companies.
Industry Evolution
Leaders believe this reset represents one of the most significant changes in gaming investment strategy over the past decade. The sector is evolving from a hit-driven business into a maturing digital entertainment ecosystem.
Examples:
- Nazara Technologies’ $303Mn acquisition of Bluetile & BestPlay signals scaling of established gaming assets.
- BITKRAFT Ventures continues to back gaming, gamified consumer apps, interactive media, and AI-led opportunities globally and in India.
- Metasports Interactive secured $20 million non-dilutive user-acquisition financing from London-based Metica to scale Hitwicket globally.
Nitish Mittersain, CEO & MD, Nazara Technologies: “Growth alone is no longer enough. Companies that can consistently retain players, build communities, and create multiple engagement touchpoints are proving far more resilient. The strongest gaming companies are building long-term player relationships rather than chasing short-term spikes.”
Anuj Tandon, Partner, Emerging Markets, BITKRAFT Ventures: “What’s changed isn’t investor appetite for gaming, it’s the bar for what a fundable gaming business looks like. AI is now a genuine differentiator. Studios using AI to cut development cycles, personalize live-ops, and improve retention are able to do more with leaner teams and tighter burn.”
Kashyap Reddy, Co-Founder & CEO, Metasports Interactive: “Building a game is easier with AI; the harder part is creating a product that keeps players coming back. Capital is following companies that demonstrate strong product metrics, durable engagement, and efficient growth.”
Anurag Choudhary, Founder & CEO, Felicity: “For homegrown publishers, rising UA costs and retention challenges make efficient growth critical. AI is enabling studios to build faster, operate leaner, and deliver more personalised player experiences.”
Key Trends
- Retention over downloads: Long-term engagement is now the key metric.
- Profitability over scale-at-all-costs: Investors demand sustainable economics.
- AI as an enabler: Improves development velocity, productivity, and player retention.
- Targeted capital: UA funding and non-dilutive financing are emerging routes to scale.
About Nazara Technologies
India’s only publicly listed gaming company with diversified interests across mobile gaming, PC & console publishing, esports, gamified learning, and offline entertainment. Operations span India, North America, and Europe. 🌐 Website: nazara.com
About BITKRAFT Ventures
Global investment platform at the intersection of games, immersive tech, digital assets, and AI.
- $1B+ assets under management.
- 130+ portfolio companies worldwide. 🌐 Website: bitkraft.vc
About Metasports Interactive
Mobile-first competitive sports gaming company. Creator of Hitwicket, a flagship cricket multiplayer title with 18 million players across 109 countries.
- Raised $8M from Prime Venture Partners and Horizon Ventures.
- Recently secured $20M UA funding from Metica. 🌐 Website: hitwicket.com
About Felicity
AI-native game company creating and acquiring high-performance games.
- Proprietary SDKs and generative AI stacks.
- ~1 million active monthly users. 🌐 Website: felicity.games
Submitted by PR Agency
