Gamepoint taps into India’s booming sports industry

Sports industry is flourishing in India with estimates of the market size being worth Rs 142 billion in 2022. An increasing number of companies are now catering to different aspects of the industry, ranging from clothing, fitness, coaching, and many more. 

Hyderabad-based Gamepoint is also among the emerging startups looking to tap into this sector but with a spin – it is offering a bouquet of sports-focused services such as coaching programs for children, booking and playing sports, hosting tournaments for corporates, and sale and lease of sports equipment. Its chain of multi-sport centers focus on games such as badminton, basketball, football, tennis and swimming.

We spoke to the company founder Aditya Reddy to learn more about Gamepoint, how it works, and what’s next. Here are the edited excerpts:

What was the thought behind building a sports-focused platform?

Recognizing the benefits of sports extends beyond physical activity; it's akin to cultivating essential life skills. This realization prompted us to understand that the sports industry offers a broader scope beyond mere physical activities. Our mission evolved to address health issues, encompassing both physical fitness and mental well-being through sports.

While there are various approaches to promoting health, we aimed to specifically address physical health, given the rising prevalence of lifestyle diseases in urban areas. Lifestyle diseases, such as diabetes, affect over 100 million people in India, with an additional 100 million at risk of developing them. Obesity is another significant concern.

The surge in these conditions, coupled with mental health issues like depression, stress, and ADHD, poses challenges previously unfamiliar in our childhood. We believe that many of these challenges can find solutions through sports, and that is the problem we aim to tackle through our initiatives in the sports sector.

How do you operate these sporting centers?

Presently, our operations span eight centers exclusively in Hyderabad. These centers, a mix of owned and operated as well as independent facilities, serve various purposes. Additionally, we collaborate with schools to manage their sports infrastructure beyond regular school hours.

Recognizing that many schools possess quality sports facilities, we partner with them to make these amenities available for coaching, memberships, and other activities during non-school hours. This utilization helps enhance community engagement and encourages sports participation.

Furthermore, we extend our services to residential communities, particularly those with well-equipped sports facilities like tennis courts, basketball courts, badminton courts, and swimming pools. We take charge of managing these facilities for the benefit of the community members.

Among all the services you provide, which is your biggest revenue driver?

Currently, our main focus areas are coaching, book-and-play memberships, and corporate events—particularly, corporate events represent our fastest-growing category. We've observed a surge in companies approaching us for end-to-end sports event management, covering scheduling, preparation, draw, prize distribution, and physiotherapy.

Looking ahead, we anticipate significant growth in segments like sports equipment retail. While we presently sell third-party brands like Yonex and Leaning, there's a potential for us to enter the private label market. The expanding sports equipment retail sector, exemplified by companies like Decathlon, presents a substantial opportunity for growth and improved margins.

Moreover, as our user base grows—currently at 2 lakh people—we envision scaling up to one crore users in the next few years. This increased engagement opens avenues for cross-selling or partnerships with other entities, tapping into a broader fitness and sports enthusiast market. While this may materialize one or two years down the line, it's an exciting prospect for future activities and monetization.

What are your expansion plans as well as possible fresh fundraise?

Presently, we operate eight centers exclusively in Hyderabad. Over the next four to five years, our plan involves expanding to 21 cities and establishing around 200 centers nationwide. Initially, we aim to target larger cities like Bangalore, Chennai, and NCR, eventually reaching the top 50 cities in India, including tier 2 and tier 3 cities such as Coimbatore, Salem, Trivandrum, Jaipur, and Nagpur.

Our belief is that these cities, despite their diverse tiers, share significant potential for our services due to common health and fitness aspirations. With a current revenue of Rs 10 crore, our expansion is expected to multiply our revenue manifold. To facilitate this growth, we have invested our own funds and secured angel funding from NRI investors. 

Presently, we are in the early stages of seeking institutional capital, targeting a funding goal of two and a half million dollars (20 crores) to propel our expansion over the next two years. The fundraising process is underway, and we anticipate completing it in the next three to six months.