Let’s Talk Gambling: Ixia Venture Capital Fund & Studio

Talk Gambling recently sat down with Ixia Capital founder & CEO Mona Motwani to learn about their latest project and how it will benefit our industry. There was a lot to discuss so here’s part one of the interview with part two to follow shortly.

Could you share more about the genesis of Ixia Capital? What inspired you to create this venture capital fund and studio?

The genesis of Ixia Capital and Studio stems from my deep understanding of the transformative potential in the gaming and digital asset sectors, particularly in emerging markets. Having spent over a decade in the gaming and gambling industry, I recognised a significant gap in the market – the need for a specialised investment vehicle that combines domain expertise with a hands-on studio approach.

We’ve structured Ixia differently from traditional VC funds. Our ‘VC Studio’ approach allows us greater control over development and direction from inception.

What truly inspired this model was my experience observing the remarkable growth trajectories in our target markets – Africa, the Middle East, and India. For instance, we’re looking at a market with about 185 million active gamers in Sub-Saharan Africa alone, with a gaming market size of $6.2 billion. India presents an even more compelling opportunity with 568 million gamers. These numbers aren’t just statistics; they represent vast untapped potential for innovation and value creation.

Our approach is data-driven and methodical, focusing on creating projects that address specific market gaps while leveraging our extensive network and expertise in gaming and digital assets. We’re buoyed about opportunities in game development, esports platforms, and associated tech startups across our target regions.

What makes this venture timely is the maturing regulatory landscape across these markets. For example, the UAE’s recent comprehensive crypto regulations and India’s recognition of esports as a multi-sport event create a more structured environment for innovation and growth. We’re positioning Ixia to not just navigate these changes but to actively shape the future of gaming and digital assets in these dynamic markets.

What specific areas within gaming, esports, and digital assets does Ixia Capital focus on? Are there any unique niches or trends you’re particularly excited about?

At Ixia Capital, our investment thesis is strategically focused on specific segments within gaming, esports, and digital assets, especially where we see attractive growth trajectories in our target markets of the Middle East, Africa, and India.

Mobile is absolutely critical in our target markets following the increasing penetration of smartphones and high-speed internet in regions like Africa and India. We’re focused on projects that leverage cloud gaming technology. This can democratize access to high-quality gaming experiences without requiring high-end hardware, which is very relevant in emerging markets.

We’re also seeing remarkable growth in esports, with a 20% rise in hourly traction post-COVID. What excites me is the infrastructure development happening in the Middle East. For instance, I witnessed this firsthand at an esports event in Abu Dhabi last year, where the diversity of participants and government support was truly impressive. The recent Dubai Esports and Games Festival, which attracted over 34,000 attendees, validates our thesis about the region’s potential.

Blockchain Gaming & Digital Assets are fascinating too. We’re working with projects that go beyond the basic play-to-earn models to create sustainable economic systems. Smart contracts and blockchain technology can ensure instant, verifiable payouts, which is valuable in markets where trust in traditional financial institutions might be lower.

Game development studios are another interesting vertical. Studios that understand local market nuances are of interest. For instance, in the Middle East, we’re seeing increasing demand for culturally relevant content, supported by government initiatives encouraging game localization.

What makes our approach unique is our studio model. Instead of just providing capital, we’re actively creating and developing projects that leverage shared resources and knowledge.

Currently, one of the most exciting trends we’re monitoring is the convergence of gaming with other forms of digital entertainment. Gen Z users are spending an average of 12 hours per week on video games and virtual worlds, almost matching their time on social media. This presents opportunities for innovation in social gaming experiences and content creation tools.

You’ve mentioned that India is a hidden gem for the iGaming sector. Could you elaborate on why you believe this to be the case? What factors make India an attractive market for investment?

India is indeed a hidden gem in the iGaming sector, and I say this with conviction backed by data and firsthand experience.

The sheer scale of the market is staggering – we’re looking at over 590 million gamers, making India the world’s second-largest mobile gaming market. What’s fascinating is that 66% of these gamers are from non-metro areas. This isn’t just a statistic; it represents a massive untapped opportunity for market penetration and growth.

From an investment perspective, the numbers are compelling. The gaming sector has already attracted $2.8 billion in investments over the past five years, and we’re seeing projections reaching $9.2 billion by FY29. There are two crucial factors that support this growth, the first being infrastructure development.

This mainly includes rapid smartphone penetration across tier 2 and 3 cities, increased affordability of high-speed internet, and the government’s digital India initiative supporting technological infrastructure.

The second is regulatory evolution. Having worked extensively in regulatory affairs, I’ve observed a significant maturation in India’s regulatory landscape. The government’s recognition of esports as a multi-sport event in 2022 was a watershed moment, lending unprecedented credibility to the sector.

What makes India interesting is the cultural shift we’re witnessing. There’s a growing preference for casual and hyper-casual games, aligning with global trends but with a distinctly Indian flavor. At Ixia Capital, we’re excited about this because it creates opportunities for local developers to innovate while catering to domestic tastes.

From my analytical perspective, what’s most compelling is the combination of different factors with the country’s unique characteristics that include a young, tech-savvy population bolstered by a growing middle class with increasing disposable income. Further momentum comes from an impressive talent pool in technology and game development. A final factor that makes India an attractive investment market is a deep cultural connection to gaming through traditional games.

At Ixia Capital, we’re strategically positioning ourselves to capitalize on these opportunities through our studio model, which allows us to create projects that specifically address the unique needs and preferences of the Indian market while maintaining global standards.

How does Ixia Capital plan to tap into the Indian market? Are there specific strategies or partnerships in place?

Our approach to the Indian market is highly strategic and methodical, leveraging our VC Studio model to create maximum impact.

The Ixia Studio model allows us to develop projects that specifically address Indian market dynamics. Rather than simply importing global solutions, we’re creating products that resonate with local preferences. Our focus is on – mobile-first gaming solutions, games that incorporate local cultural elements and preferences, and platforms that can operate efficiently even in areas with varying internet connectivity.

Experience from working in the India market with Sportradar has underscored the importance of the right infrastructure. We’re focusing on Cloud gaming solutions and technologies that can optimise performance on mid-range devices.

Given the evolving regulatory landscape in India, we’re implementing a robust compliance framework. This includes building relationships with regulatory bodies, ensuring our projects are compliant from the ground up, actively participating in industry discussions about regulatory development, and leveraging my experience in government relations to navigate the regulatory environment.

With these three elements in place, then it’s down to implementing an adaptive market entry strategy. Initially we focus on regions with high digital penetration. Then we gradually expanded into tier 2 and tier 3 cities using localised approaches specific to different regions within India

Our studio approach sees us maintain direct control over these projects and means we can quickly adapt to market feedback. Control extends to ensuring that quality standards are always met and allows us to create synergies between different projects we’re working on.