Esports and digital gaming is brands' new battleground

India is rapidly transforming into a global digital powerhouse, shifting from merely a consumer market to a prolific creator hub. This dramatic shift is fueled by unprecedented digital accessibility, with Tier 2 and 3 cities now driving a massive 63% of consumption, thanks to affordable smartphones and low-cost data. This widespread adoption has directly fueled an explosion in digital gaming. The Indian esports market, in particular, is on an aggressive upward trajectory, projected to soar from $40 million (2025) to $132 million by FY30. This growth is underpinned by a massive mobile-first user base and the growing acceptance of esports as a legitimate youth aspiration, often dubbed the 'new-age cricket.'

Brands like NODWIN Gaming, along with Upthrust and Skyesports, are driving this competitive landscape. The monetisation of this audience is also maturing rapidly: the Average Revenue Per Paying User (ARPPU) has seen a sharp increase, rising from just $3.5 in 2020 to $27 in 2024, signaling a greater willingness for in-app purchases and subscriptions like season passes, leading brands across all sectors to recognise the reach of this deeply engaged, digital-native demographic.

Crucially, the structural legitimacy required for large-scale brand investment has been secured by decisive government action. Esports has been formally recognised as a competitive sport, establishing coordination between the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Youth Affairs and Sports (MYAS). One of the accelerators is the Promotion and Regulation of Online Gaming (PROG) Act, 2025.

This Act imposed a definitive complete prohibition on all online money games (Real Money Gaming or RMG) that involve monetary stakes. This legislative clarity served to de-risk the entire legitimate esports and content creation sector.

As RMG companies were forced out of high-visibility sponsorship slots, a commercial vacuum was immediately created for mainstream, non-endemic brands (FMCG, automotive, fintech) seeking to reach the aspirational youth demographic in a legally sanctioned environment.

Brands are engaging this audience not through simple advertisements, but through innovative and contextual partnerships that validate esports as a mainstream cultural phenomenon.

Automotive brands have led the charge: Tesla made its strategic Indian debut by partnering with NODWIN Gaming’s Battlegrounds Mobile India Masters Series (BGMS) Season 4, featuring the physical display of the Tesla Model Y on stage to align the EV giant with the audience’s core values of innovation and aspirational technology.

Similarly, Mahindra Thar has used in-game integration with virtual car models in popular games, while Hyundai has collaborated with Indian tournaments.

Consumer-focused brands are equally innovative; Zomato and Swiggy strategically leveraged tournaments to target gamers and the audience as ticketing partners and delivery partners respectively.

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Global brands, like Coca-Cola, offered themed products in collaboration with the League of Legends, which stands as an example among FMCG players.

The boundaries of sponsorship are even expanding to education: Microsoft Excel partnered with Skyesports to host the India Qualifier for the Microsoft Excel World Championship (MEWC), showcasing how the competitive platform is now relevant for finance and consulting sectors by testing logic and data skills.

While non-endemic brands bring mass-market visibility, endemic brands, which supply core hardware and technology, remain vital. Tech brands like Intel, OMEN, and HyperX consistently sponsor events, such as Reliance Digital’s ‘Digital Level Up’ tournament, featuring core titles like BGMI and Valorant.

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The current monetisation mix of the Indian esports market provides a clear blueprint for future brand investment. While sponsorships currently dominate the revenue pie at 59%, the most significant future opportunity lies in the Media Rights segment (currently 18%). Projected to be the fastest-growing revenue stream, the rise of media rights signals market maturation, mirroring the structural dynamics of traditional sports economies.

For brands looking to deepen their involvement, the future lies in strategic commitment. This includes moving beyond single sponsorships to exploring long-term deals for exclusive media rights and investing in infrastructure and talent development, such as bootcamps, training academies, and educational programs.

By investing in media, infrastructure, and culture today, brands are positioning themselves to lead the digital consumption landscape of tomorrow.