From clarity to capital: Brands bet big on esports in India
India’s esports ecosystem has rapidly evolved from a niche subculture into a structured, high-growth industry. According to data from Grand View Horizon, a portal for market reports and statistics, India’s market is expected to reach a projected revenue of $307.2 million by 2030, driven largely by brand investments and sponsorships. A compound annual growth rate of 28.4 per cent is expected of India esports market from 2025 to 2030.
In 2024 alone, sponsorships accounted for over 43 per cent of total esports revenue in India, making them the single largest contributor.
In this exclusive conversation with SiGMA News, Tapasya Shukla, Founder and Managing Director of Zutsu Media, an esports organisation, breaks down why brands are moving into esports, what they’re getting right, and how the future of brand engagement is being rewritten.
In Part 1 of this two part series, we explored how India’s esports industry is finally moving “from confusion to clarity,” a transition driven by regulatory separation, policy evolution, and growing institutional confidence.
FMCG brands and esports
SiGMA News: Why are fast-moving consumer goods (FMCG) brands entering esports, and do they really understand how to engage the audience?
Tapasya Shukla, Founder and Managing Director of Zutsu Media: India has over 500 million gamers and tens of millions of esports viewers, most of whom fall within the 16-30 age group, an audience that traditional advertising often struggles to reach. FMCG brands are entering esports primarily due to its scale, high engagement, and access to young consumers.
Brands such as Hindustan Unilever Limited (HUL) and Bisleri are not limiting themselves to conventional advertising; they are integrating their products into the gaming lifestyle. HUL’s Boost aligns with themes of energy and performance, while Bisleri naturally fits into hydration during gameplay. This reflects a broader shift from interruption-based advertising to contextual, lifestyle-driven integration.
Subtle and natural placement is the strategy’s main aim. Brands are integrating related items directly into the consumer environment rather than depending on forceful promotion. With no overt sales pitch, this method allows for a smooth incorporation into the lifestyle.
Brands executing this integration strategy demonstrate a clear understanding of how to effectively engage the esports audience.
Gaming audience engagement shift
SiGMA News: From a brand partnerships perspective, what differentiates gaming and esports audiences from traditional digital audiences, and how should iGaming companies adapt their strategies accordingly?
Shukla: Traditional digital audiences are accustomed to interruption-based advertising, where ads are often repetitive, skippable, and poorly contextualised. This approach may drive reach and recall, but it frequently leads to disengagement and ad fatigue, limiting deeper brand impact.
Gaming and esports audiences operate differently. Their tolerance for intrusive advertising is extremely low, particularly during high-engagement moments such as live gameplay. Disruptive ads can create negative brand perception rather than awareness.
However, when brands integrate seamlessly into the ecosystem, they become part of the experience rather than a distraction.
Subtle, contextual placement, such as sponsorships, in-game integrations, and branded environments, is essential to successful tactics in this field. Without interfering with the user experience, these methods allow for higher subconscious recollection and organic visibility.
For iGaming companies, the focus should shift from forced visibility to immersive presence. Building brand association through relevant moments and environments is more effective than traditional high-frequency advertising. Long-term impact in this audience is driven by integration, not interruption.
Building sustainable esports careers
SiGMA News: With more Indian players pursuing esports careers, concerns around financial stability, contracts, and long-term security still persist. What specific structural changes are needed to make esports a truly sustainable profession in India?
Shukla: Esports infrastructure in India is steadily developing, with increasing investment and earning potential for top-tier athletes. However, long-term financial stability and career security remain key concerns.
The most critical structural requirement is education, implemented across three levels.
First, esports organisations must adopt greater accountability and transparency in contracts. Standardised regulations, supported by a recognised governing body, that can help ensure fair contracts, minimum compensation standards, and player protection.
Second, athletes require organised counselling regarding the duration of their careers. Players must be ready to move into positions like team management, content production, or industry partnerships in order to preserve financial security after their playing years, as competitive performance peaks early.
Third, broader awareness within society is essential. Educating parents and stakeholders about the economics and career pathways in esports will reduce uncertainty and encourage informed support for emerging talent.
A sustainable esports ecosystem will depend on combining institutional structure with informed participation across all stakeholders.
SiGMA News: How should esports organisations and brands engage Gen Z audiences in India?
Shukla: Engaging Gen Z requires a clear understanding of their media consumption behaviour. This audience is highly selective, processes information quickly, and prioritises authenticity and meaningful experiences. Traditional, interruptive advertising is largely ineffective and often leads to disengagement.
To remain relevant, brands must shift from push-based communication to demand-driven engagement. The focus should be on creating value that attracts the audience organically rather than forcing visibility.
Effective tactics include creating gamified experiences with tangible digital incentives, utilising data and artificial intelligence (AI) for contextual, real-time engagement, and creating visually appealing material that is simple to share on social media.
The emphasis should be on subtle, experience-led integration that aligns with the audience’s preferences. Long-term relevance will depend on authenticity, seamless execution, and a consumer-first approach rather than aggressive promotion.
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