India is known as a cricket-mad country, but it is also Asia’s No. 1 SportsTech nation, boasting more than 3X times the number of SportsTech startups compared to any other Asian country. Technology is the future of sports and SportsTech will continue to evolve and become more relevant over the coming years. Venture Capitalists (VCs) play a critical role in India’s burgeoning SportsTech sector. Let’s explore!
Four Key Sub-sectors in SportsTech
Today, India’s SportsTech market is composed of four main types of companies:
- Activity and Performance: Solutions such as wearables for before, during, or after a sports activity
- Management and Organisation: Tools to manage businesses, venues, leagues, and events, sites to find athletes and coaches, and sites to purchase sports-related goods and services.
- Media and Fans: Services that give sports businesses with a variety of materials and data for social media marketing, branding, fan meets, etc.
- Games and Bets: Companies providing eSports, gaming portals, and betting platforms.
VC in SportsTech
VC is a type of funding for small, early-stage, high-risk businesses in which investors (venture capitalists) invest their money with the hope of turning a profit. Sports serve as a unifying force and the sports market is becoming increasingly intriguing and profitable for investors. Per a TechCrunch Tableau study, between 2012 and 2015, VC financing for SportsTech businesses increased by approximately 30% year over year.
According to Deloitte, the sector received over US$6 billion in investment between 2011 and 2015, with over US$2.4 billion invested in 2015 alone. And yet, it’s also true that VC presence in SportsTech is still expanding and nowhere near what it could be in the near future.
The Future of SportsTech Investment in India
The development of the SportsTech sector has created new chances for some investors to use their skills in ways they never have before. The continued growth of athletic leagues in India indicates that sports and related industries have a bright future in the country. Mainstream subsectors such as production and promotion are expected to develop as demand for high-quality athletic items grows, while India’s growing thirst for athletic events opens new opportunities for investments in SportsTech services, marketing, and broadcasting.
The Indian SportsTech sector is witnessing increased private sector involvement, which is changing investment and collaborative practices. Due to governmental incentives and proven operating models by first-mover enterprises, future investors will find it easier to navigate this sector in future.
Article written by Madhu Mallah, Associate @ Prime Infotech Solution
