Your browser is currently blocking notification.
Please follow this instruction to subscribe:
X
Notifications are already enabled.
X

Paytm, Alibaba Gaming JV To Raise $25 Mn From SAIF Partners

Paytm, Alibaba Gaming JV To Raise $25 Mn From SAIF Partners

Paytm First Games is a joint venture of Paytm and Alibaba’s AGTech

The company was earlier called Gamepind and was renamed to Paytm First Games

Paytm First Games is said to have annual revenue run rate of $50 Mn

Alibaba’s AGTech and Paytm-owned gaming company Paytm First Games is in talks to raise $25 Mn. According to a media report, the investors in the round include SAIF Partners along with a Hong Kong-based entity.

Launched in 2018 as Gamepind, the gaming platform was recently renamed to Paytm First Games as part of Paytm’s efforts to offer a clutch of services under its paid subscription plan Paytm First. 

In August 2018, Paytm and AGTech have co-invested $16 Mn in Gamepind. The company had then planned to invest in expanding its operations and also appointed a new COO, Sudhanshu Gupta.

According to Sudhanshu Gupta, Paytm First Games have grown multifold in the last one year. The gaming platform claims to have 30 Mn users with half of them being monthly active users. On paid games, the platform users have spend around INR 4K on games such as Rummy, while the user spends towards fantasy games are said to be around INR 400.

Paytm First Games is said to have an annual revenue run rate of $50 Mn. The company is currently planning to double its current team size of over 150 people and will also invest in technology and building of e-sporting events.

Lately, Paytm has been aggressively trying to expand its service portfolio through diverse investments and partnerships. Recently, the company has partnered with CLIX Finance to formally enter the digital lending space. Also, global ecommerce giant eBay has recently announced a partnership with Paytm Mall. 

Online Gaming Market In India

The online gaming industry in India is expected to generate a revenue of INR 11,900 Cr by financial year 2023, growing at 22% CAGR, according to a report by consulting major KPMG and industry’s self-regulatory body, Indian Federation of Sports Gaming.

Another interesting observation in the report was the hike in number of gamers and game developing companies. The number of  game developing companies have touched 250 in 2018 as compared to 20 companies in 2010 while the number of gamers has reached 250Mn from 25 Mn in 2010. Puzzle, action and adventure were reported as the top genres in mobile gaming.

Some notable companies in the online gaming segment of India include, Games2Win, Nazara TechnologiesSachin Tendulkar-backed Smaaash, Pocket Aces-owned Loco, BaaziGames and more.

Further, the number of fantasy sports operators in India have witnessed a seven fold growth since 2016, with 70 operators in 2018. Number of fantasy sports users in India has also grown 25 times to 50 Mn users in 2018 from mere 2 Mn users in June 2016, according to KPMG.

Major operators in the fantasy sports segment are Dream 11, MyTeam11, CricPlay 11Wickets, StarPick and Fantain. Among these, Dream11 was reported to have the largest user base of 50 Mn, as of February 19, 2019.