Bans are definitely a matter of concern but the next 18-24 months look exciting and promising despite the regulatory hiccups, said Prabhakar Sunder, Chief Financial Officer at online rummy platform A23’s parent company, Head Digital Works in an interview to the Economic Times.
Sunder said globally gaming has been a phenomenon over the last few years and gaming in India is expected to grow disproportionately faster due to multiple factors.
As per KPMG-FICCI 2021 report, India’s gaming market is projected to reach Rs. 143 billion (US$ 2.03 billion) by FY22 up from just Rs. 62 billion in FY 2021. The mobile gaming market in India is projected to hit a $5 billion opportunity by 2025 from the current $1.5 billion, according to a recent Sequoia India and Boston Consulting Group report.
Hyderabad based A23 has recently launched play responsible campaign featuring Shah Rukh Khan. Telangana where Hyderabad is located had banned real money games in 2017.
Sunder said southern states represented a major market share till a few years back and A23 was able to diversify to other states.
Head Digital is one of petitioners before the Karnataka and Kerala High Courts challenging the online gaming ban laws. Sunder said A23 is actively engaged with the governments and expect some kind of regulation to be put in place.
Sunder said A23 is a profit making business model with adequate cushion to tide over this phase. The profitability did not require the company to look for external fund raise over the last few years. He said, however, there is adequate investor interest in this space and refused to disclose the funding plans.
Sunder concluded that A23 is quite confident that gaming is here to thrive and at least grow at a CAGR of 40%+ over the next 2 years
