Nazara Tech and Nikhil Kamath's WTFund are Investing in Two New Gaming Startups

Nitin Konde, Varun Bhardwaj

Nov 16, 2024 — 3 min read

Nazara Tech and Nikhil Kamath's WTFund Back Two New Gaming Startups

On November 15, Nazara Technologies and Zerodha co-founder Nikhil Kamath's WTFund promised to invest a total of INR 2 crore in two gaming firms, Xigma Games and Norian Games. In order to improve India's reputation in the international gaming industry, they are investing in the next generation of domestic gaming companies. According to a joint announcement from the companies, Norian Games and Xigma Games will receive financial support as well as access to mentorship and strategic direction as a result of this investment.

According to Kamath, this fund is a first step towards helping businesses that have established themselves with their inventive games, and he said that he is very excited to watch them continue to push their boundaries.

WTFund was Launched to Nurture Young Entrepreneurs

The establishment of the WTFund, a non-dilutive grant-agnostic fund aimed at fostering young entrepreneurs under 25, was announced by Kamath in April. By investing in entrepreneurs in a variety of industries, the fund helps them grow. Nitish Mittersain, the founder of Nazara Technologies, added that the multifaceted gaming and sports media company is dedicated to developing India's future gaming talent. "Aldian of Ancients," a dinosaur survival simulation game for PC and console, is being developed by Norian Games, a startup based in Kerala.

In the meantime, the Bengaluru-based game development company Xigma Games has published games like "The Bonfire: Forsaken Lands" and "The Bonfire 2: Uncharted Shores," which together have received over 10 million downloads. The games are presently accessible on Steam, the Apple App Store, and the Google Play Store. "Metal Haven," the studio's most recent release, is a sci-fi action-strategy game that can be played for free.

India’s Gaming Market

According to Niko Partners, a market research and consultancy organisation that focuses on video games, e-sports, and streaming in Asia, India is the fastest-growing gaming market in the region in terms of both revenue and players.

In 2024, it is anticipated that the combined revenue from mobile, PC, and console gaming will reach $943 million, an increase of 13.6% from the year before. According to the report, the market is anticipated to generate more than $1 billion in sales by 2025 and $1.4 billion in 2028, representing a compound annual growth rate of 11.1% over the next five years. These numbers exclude export and real-money gaming income.

The online gaming industry is having problems because of the regulatory ambiguity under the IT Amendment Rules, 2023, according to Aruna Sharma, a Practitioner Development Economist and former secretary, Ministry of Electronics and Information Technology (MeitY). This is because the establishment of self-regulatory bodies (SRB) was only partially completed, and there is no central regulatory authority to address the industry's concerns. Furthermore, it is challenging for respectable domestic and foreign gaming businesses to run efficiently because of the absence of distinction between games of skill and games of chance.

The industry has been severely impacted financially by the GST hike from 18% to 28% as well as punitive tax applications. Taxation has been a major issue for the sector, according to Parth Chadha, co-founder and CEO of STAN. Owing to this, numerous online gaming businesses were forced to close their doors and lay off employees.