Gaming In 2026, PW Rolls In Q2 Profits & More

Gaming In The Post-RMG Era

India’s online gaming industry closed a painful chapter in 2025. The ban on online real money gaming toppled giants, triggered mass layoffs and even led to arrests of cofounders. Amid the churn, what could be in store for the gaming ecosystem in 2026?

Funding Recovery: The worst of the investment slowdown is over, with VCs recalibrating their approach post-RMG ban. Funding is expected to see steady improvement rather than explosive growth, with backers now prioritising revenue, profitability, and sustainable business models. 

The Casual Gaming Shift: The RMG collapse has triggered massive focus on casual and hyper-casual gaming, with founders building for an international audience. However, the long-term impact hinges on capital flowing beyond the seed stage. 

Chasing Production Depth: Insiders believe that gaming studios will now have to master user acquisition, paid testing, data analytics, and publishing infrastructure as organic installs vanish. Simultaneously, studios are focussing on genre rationalisation, concentrating on predictable categories like Solitaire, word games, and sorting puzzles that enable accurate lifetime value estimation and reduce user acquisition risk.

The Hybrid Hypothesis: With ad network consolidation squeezing publisher yields, studios are shifting focus towards hybrid models, which blend in-app purchases with ads, to balance risk and shorten breakeven timelines. Alongside, web shops and alternative billing channels are witnessing a meteoric rise as publishers seek to route payments outside app stores to avoid 30% fees.

The Esports Boost: Industry leaders see 2026 as the year the competitive esports pyramid takes shape – widening grassroots participation, rebuilding the missing middle tier of regional tournaments, aggressively expanding viewership, and attracting advertisers and investment. 

As startups rebuild the fledgling ecosystem from ashes, the real test is just beginning. With much on the plate, what will define the Indian online gaming sector in 2026? Let’s find out… 

From The Editor’s Desk

PhysicsWallah’s Profit Pops In Q2

• The listed edtech unicorn’s net profit rose 69% YoY to INR 69.7 Cr in Q2 FY26, marking a sharp turnaround from the previous quarter when it slipped into the red with a net loss of INR 127 Cr.
• The rebound was powered by strong top-line momentum – operating revenue jumped 26% YoY and 24% QoQ to INR 1,051.2 Cr. However, the growth came with a cost as total expenses surged 25% YoY to INR 999.6 Cr during the quarter.
• Founded in 2020, PW made a stellar debut on the exchanges last month, listing at a premium of 45%.

Wakefit IPO Day 1

• The D2C mattress and furniture brand’s IPO opened to a muted response, with the issue subscribed just 15% on the first day. The public issue received bids for 55.12 Lakh shares against 3.63 Cr on offer.
• Retail investors drove most of the demand by subscribing 73% of their quota, while NIIs barely showed up and subscribed only 7%. QIBs bid for a negligible 3,192 shares out of 1.98 Cr reserved for them.
• Wakefit’s public issue comprises a fresh issue of shares worth up to INR 377.2 Cr and an OFS of up to 4.68 Cr shares. At the upper end of its INR 185 to INR 195 IPO price band, the startup is eyeing a listing of INR 6,373 Cr.

Virat Kohli Bets Big On Agilitas

• The cricketer is selling his lifestyle-athleisure brand One8 to sportswear startup Agilitas for an undisclosed amount. Simultaneously, Kohli will invest INR 40 Cr to pick up a “mid-single digit” stake in the startup.
• As part of the transaction, Kohli has signed an exclusive deal that bars him from endorsing any other sports brand, effectively walking away from a potential INR 300 Cr contract renewal with Puma.
• Founded in 2023, Agilitas positions itself as a full-stack sportswear and footwear company, covering the entire lifecycle from product design and manufacturing to retail and distribution.

TAC Infosec’s Nasdaq Moonshot

• The NSE SME-listed SaaS company’s US subsidiary, CyberScope Web3 Security Inc, has kicked off the process for a potential listing on the Nasdaq.
• If the listing materialises, TAC Infosec would be the only Indian new-age tech company to tap the US capital markets via an international subsidiary. 
• Founded in 2016, TAC Infosec offers cybersecurity solutions to over 3,000 clients in 100 countries. Currently trading at INR 771 on the NSE Emerge, TAC Infosec listed last year at INR 290, a premium of 173.6% to the issue price of INR 106.

The Sanchar Saathi Paradox

• The Centre’s recent decision to mandate pre-installation of the Sanchar Saathi app on all new smartphones triggered a big public outcry over fears of surveillance. The push back forced the government to take a U-turn, and make the app “optional”.
• On paper, Sanchar Saathi promises to block stolen devices, detect fake IMEIs and reduce telecom fraud, but critics warn that deep OS-level integration and broad permissions could turn millions of phones into tracking devices, with access to call logs and SMSes.
• Running parallel to the Sanchar Saathi controversy is the proposed SIM-binding regime, which would force messaging apps to tightly couple user accounts with specific SIMs and devices, making portability and anonymity harder.

Inc42 Markets

Inc42 Startup Spotlight

Can Protouch Disrupt The Beauty Tech Space?

India’s skincare market is booming. Yet, it is still hard to find science-backed and tech-enabled beauty products in the mass segment. That’s the gap Protouch wants to solve by turning homes into mini skin clinics and grooming studios for Indian consumers.

Beauty Tech For Bharat: Founded in 2022, Protouch designs and builds tech-driven beauty and personal care appliances tailored to Indian skin types, hair profiles and usage habits. Its product lineup includes LED-based skincare devices, ceramic-edge trimmers, serums and oral-care products, marrying hardware with targeted formulations. 

The At-Home Grooming Wave: The brand, which sells its offerings through its own website and online marketplaces, claims to have already served more than 2 Lakh customers across India and the Middle East. Within just 30 months, Protouch claims to have seen 15X top-line growth while staying profitable. 

Pitted against entrenched giants like Philips, Panasonic and Havells, the startup is eyeing a piece of the fast-growing personal care appliances market, which is projected to become a $32.1 Bn opportunity by 2030

As Indian consumers demand result-oriented skincare and grooming at home, can a nimble Protouch carve out a niche against global heavyweights?

Infographic Of The Day

In 2025, more than 9,500 employees lost their jobs as Indian startups downsized or “right-sized” their teams. Here are the big names that handed out pink slips in droves…