India, 24 August 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 approximately $1.04 billion and growing 14.8% year-on-year, according to Niko Partners India Player Behavior & Market Insights Report 2026. With a large and increasingly engaged player base, rising consumer spending and a growing pipeline of homegrown gaming companies, the market opportunity remains compelling even as investors become more disciplined about where and how they deploy capital.
Industry leaders believe the reset represents one of the most significant changes in gaming investment strategy over the past decade, reflecting the sector’s evolution from a hit-driven business into a maturing digital entertainment ecosystem. This shift is also reflected in Nazara’s recent $303Mn acquisition of Bluetile & BestPlay signalling scaling of established gaming assets. BITKRAFT Ventures continues to back gaming, gamified consumer apps, interactive media and AI-led opportunities, globally and in India.
At the same time, new forms of targeted capital are emerging, such as the $20 million non-dilutive user-acquisition financing secured by Metasports Interactive from London-based Metica to scale Hitwicket globally. Together, these investments point to a more sophisticated funding landscape, where capital is increasingly being matched to product maturity, growth efficiency and the specific economics of scaling a gaming business.
Nitish Mittersain, Founder, Chief Executive Officer & Managing Director, Nazara Technologies, said, “The biggest change in gaming over the last few years is that growth alone is no longer enough. Companies that can consistently retain players, build communities around their products and create multiple engagement touchpoints are proving to be far more resilient businesses. We are seeing a value shift from acquiring users to keeping them engaged over years through content, rewards and live experiences. That fundamentally changes how gaming businesses are built and scaled. The strongest gaming companies are building long-term player relationships rather than chasing short-term growth spikes.”
For investors, this is also changing the role of technology in the gaming business. AI is increasingly being assessed not simply as a product feature, but as a means of improving development velocity, productivity and the economics of running a gaming company.
Anuj Tandon, Partner, Emerging Markets, BITKRAFT Ventures, stated, “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, not a buzzword. Studios using AI to cut development cycles, personalize live-ops, improve player retention, and build large distribution moats are able to do more with leaner teams and tighter burn. That efficiency, combined with strong recurring revenue and engagement fundamentals, is becoming the new baseline for investor screening.”
The shift is already visible in the growing emphasis on user acquisition efficiency and measurable product performance. For companies that can demonstrate strong retention and monetisation, targeted capital like UA (User Acquisition) Funding is becoming an increasingly important route to scale.
Kashyap Reddy, Co-Founder and CEO, Metasports Interactive, added, “Building a game is becoming easier with AI; the harder part is creating a product that keeps players coming back and delivers sustainable economics. Capital is increasingly following companies that can demonstrate strong product metrics, durable engagement and efficient growth. The shift towards UA funding is one reflection of this broader change.”
For India’s gaming ecosystem, the reset could ultimately strengthen the quality of companies being built. With the domestic market growing despite a significant regulatory transition, the opportunity is increasingly shifting towards studios and platforms capable of creating globally relevant IP’s, building durable player communities and scaling with greater capital efficiency.
Anurag Choudhary, Founder & CEO, Felicity, said, “For homegrown publishers, rising user acquisition costs and the challenge of sustaining retention are making efficient growth increasingly important. Investors are therefore looking more closely at how consistently a business can acquire, engage and monetise players. AI is becoming an important enabler here, not just for lowering costs, but for helping studios build faster, operate leaner and deliver more personalised player experiences.”
As gaming continues to evolve into one of the world’s largest and most influential digital entertainment sectors, the funding playbook is becoming increasingly clear: retention over downloads, profitability over scale-at-all-costs, and sustainable innovation over short-term momentum.
About Nazara Technologies:
Nazara Technologies is India’s only publicly listed gaming company with diversified interests across mobile gaming, PC & console publishing, esports, gamified learning and offline entertainment. With operations across India, North America and Europe, Nazara is building a global gaming platform powered by strong IP, publishing and operating capabilities. Website: https://www.nazara.com/
About BITKRAFT Ventures:
BITKRAFT Ventures is a global investment platform at the intersection of games, immersive technology, digital assets, and AI. With over $1B in assets under management and more than 130 portfolio companies, BITKRAFT is built by founders for founders. The firm leverages deep domain expertise, a decentralized global presence, and institutional-grade infrastructure to back visionary teams building in interactive media and adjacent verticals. BITKRAFT’s core belief is that gaming is not just the largest entertainment sector—it is a catalyst for consumer and technology innovation and a blueprint for the future of digital experiences. For a full list of public investments made to date, view BITKRAFT’s portfolio here.
About Metasports Interactive:
Metasports Interactive is a mobile-first competitive sports gaming company building multiplayer sports games designed for long-term engagement and global scale. The company is the creator of Hitwicket, its flagship cricket multiplayer title launched in 2020, which blends deep, skill-based gameplay with mass-market accessibility. With a long-term vision to create category-defining sports gaming franchises, Metasports Interactive is focused on shaping the future of competitive sports gaming on mobile. Operating with a player-first, performance-driven approach, the company maintains a strong focus on product quality, scale, and global impact, underscoring that India can build world-class gaming companies beyond casual or service-led products. Metasports Interactive has raised $8Mn in funding from Prime Venture Partners and Horizon Ventures (Singapore). The startup recently raised a $20 Million User Acquisition funding from London based Metica and is also backed by renowned cricket commentator, Harsha Bhogle. The game, designed as a skill-first, competitive multiplayer experience, has grown to over 18 million players across 109 countries.
About Felicity:
Felicity is an AI-native game company creating and acquiring high-performance games for the next decade. With proprietary SDKs, generative AI stacks, and an expanding global team, Felicity powers a new era of forever gaming across platforms. It caters to ~1mn active monthly users.
