He also predicts that while India may lag in hardware-heavy gaming, the market will embrace immersive technologies like XR as affordable devices become available.

Bitkraft Ventures is strategically focusing on high-growth regions, including India, West Asia, and Southeast Asia, and is hiring local partners to effectively tap into these emerging markets.

Tandon emphasizes the necessity of sector-specific venture capitalists to differentiate genuine AI applications in startups from mere buzzwords in pitch decks.

Bitkraft Ventures is optimistic about India's gaming sector, viewing the next few years as an ideal time for investment, driven by the industry's maturation reminiscent of China's past.

The Indian gaming market is projected to grow at a compound annual growth rate of 14.5%, nearly double the global average, fueled by rising disposable incomes and a burgeoning middle class.

This growth is further reflected in the shift towards increased consumer spending on in-game purchases, which has surged post-COVID, marking a significant change from India's previous standing as one of the lowest globally.

The number of gaming studios in India has skyrocketed from around 50-70 to between 500-600, showcasing a thriving indie game development scene, although publishers still face challenges.

Anuj Tandon, Partner for India and UAE at Bitkraft Ventures, highlights the growth potential within India's gaming ecosystem, even amidst a funding downturn attributed to taxation concerns.

Tandon notes a growing opportunity for game publishing in India, particularly in the AI-driven landscape, which could enhance the publishing model for indie studios.

AI is playing a significant role in transforming gaming by speeding up game development and democratizing the creation process, although investor confidence in its integration remains mixed.

With his extensive background as an operator and investor, Tandon believes that deep knowledge of the gaming industry is crucial for successful investments.