The Tencent playbook: Sai Srinivas-led M-League eyes global gaming share with F2P, esports push

As India's gaming sector grows exponentially, top gaming companies are racing to tap into the lucrative free-to-play and esports segments. Among them, M-League, the parent company of Mobile Premier League (MPL) — one of the biggest mobile esports and skill gaming platforms in India — is betting big on this strategy. M-League’s flagship unit, MPL, offers over 60 games, ranging from card games like Rummy and Poker to board and casual games like Ludo, to widely popular fantasy sports games in cricket, football, and basketball, as well as arcade, puzzle, and sports action games.

The company, which has bases across India, Singapore, the US, Brazil, and Europe, positions itself as India's largest diversified skill gaming platform and a major free-to-play player. "Of course, we have larger free-to-play businesses who've come into India from outside, including Krafton, but apart from them, I think we would be one of the largest in India. Our goal is to build on this and become the 'Tencent of India', which is a global gaming leader," Sai Srinivas, Co-founder and CEO of M-League, tells Fortune India.

M-League has made significant acquisitions to expand its offerings in the recent past, including the acquisition of GameDuell in 2022, which has unlocked significant revenue growth. Srinivas says M-League’s free-to-play arm, GameDuell, grew 65–70% last year. "We expect 50% growth this year," says Srinivas, who co-founded M-League with Shubham Malhotra in 2018. While GameDuell serves Europe and the U.S., the company's Blast+ initiative brings global games to India, handling operations for studios deterred by the market's current operational challenges.

"India is critical for users (daily active users) who drive future revenue. But we must also compete globally because India isn't a protected market. We have to be world-class to succeed here," Srinivas explains. Apart from these three platforms, M-League’s AAA gaming studio, Mayhem Studios, focuses on developing immersive games set in an Indian context.

Srinivas says the US is currently one of the fastest-growing markets for MPL. In revenue terms, 60% of M-League’s biggest revenue comes from India, while 40% comes from international markets, largely through GameDuell. The company expects overall 30%+ growth in dollar terms, with all businesses now profitable.

M-League to double down on eSports

M-League has big plans to take eSports to a whole new level in India. It envisions a Cricket World Cup-style tournament for competitive gaming. "We believe people will want to participate in global tournaments where millions compete. Our goal is to build that platform," says Srinivas, while noting the operational challenges in conducting such tournaments. "Challenges include ensuring fairness, regulatory compliance, and transparency across regions. We aim to pass every regulatory test globally while keeping the platform clean and fair."

Regarding regulation-related challenges, Srinivas says, "Skill-based gaming is legal in most countries. In India, people pool money for cricket tournaments -- why not digital skill games? The key is transparency and consumer protection."

Financial footing & valuation

The company last raised 350 million in total across 5 rounds at a $2.3 billion valuation. "Revenue has nearly tripled since then, and we're profitable. We don't need more funding and focus on reinvesting profits," says Srinivas, though pending GST clarifications in India have affected local valuation, he asserts. M-League recorded double-digit (22.2%) YoY growth in FY24, crossing the revenue mark of ₹1,068 crore as compared to ₹873.7 crore in FY23.

The gaming industry in India has experienced exponential growth, driven by technological advancements and increased Internet penetration. Between FY20 and FY23, the online gaming sector, which includes mobile gaming, witnessed a CAGR of 28%, according to EY. Despite the highest GST slab being imposed on online gaming, the sector saw revenues hit $3.8 billion in FY24, a growth of 23% year-on-year, as per Lumikai. The industry is set to experience more than 100% growth in the next five years, reaching $9.2 billion.