AFK Gaming has received $200,000 in funding from investment company Inflection Point Ventures (IPV). The Pre-Series A round of funding is a significant step for the Indian-based IPV. They prop up a fellow Indian company seeking to make their mark in esports in the relatively untapped Indian esports media market.
Who is AFK Gaming?
AFK Gaming is an esports media and content company. They provide extensive coverage of the Asian esports industry through articles, video content and social media coverage. AFK Gaming Cofounder Nishant Patel sees a lack of global coverage of India’s esports industry and intends to be the solution.
“Despite some of the best esports teams, tournaments and players hailing from the Asian region, there is a distinct lack of coverage available for the global audience,” Patel said in a press release announcing the investment. “AFK Gaming aims to bridge this gap by marrying our understanding of esports content creation with IPV’s expertise in building scalable, sustainable businesses.”
Why is This the Right Investment for Inflection Point Ventures?
Like any investment company, IPV is always looking to diversify their portfolio and branch out into new fields. This move is no different. Founder and CEO Vinay Bansal cited the COVID-19 pandemic as a motivating factor in making this deal.
“The ongoing pandemic has introduced us to many aspects of keeping ourselves engaged,” Bansal said. “Esports and e-gaming have also emerged as new aspects for many of us, and companies like AFK Gaming have played a part in keeping us informed about esports in the lockdown.”
Bansal noted that AFK Gaming’s user base has quadrupled since the pandemic and believes it is only the beginning for the rising media company.
AFK Gaming plans to use the infusion of cash to expand revenue through advertising. While they cover Dota 2, Counter-Strike: Global Offensive and mobile gaming esports, they also plan to expand the number of titles they cover.
What’s Attractive about Esports in India?
Esports has immense potential in India. According to a 2018 Forbes India report, China has the largest gaming market globally, with total revenue of $37.9 billion. The United States ranks second, and fellow Southeast Asian nations Japan and Korea come in at third and fourth. India lags those nations, ranking 16th in total gaming revenue with $1.17 billion.
At the start of the decade, India had only 25 game developers. As of 2020, there are now 250 game developers in the country. China, a country of 1.393 billion people as of 2018, was expected to generate $210.3 million in 2019 through esports revenue. Meanwhile, India had a comparable 1.353 billion people as of 2018 but has been slower to jump on the esports bandwagon.
Esports’ growth in India has already begun in recent years. Loco is an Indian live streaming platform with a partnership with Red Bull. Paytm First Games, an Indian digital gaming platform, has found success, attracting Riot Games as a sponsor for their Teamfight Tactics tournament. Indian company Baseline Ventures works with an Indian gaming team, Marcos Gaming. In the coming years, India will become a force in the global esports industry.
Written by Chris Connors | image credit: https://afkgaming.com/