Back on IPL pitch: Are startups ready for second innings?

India’s startup ecosystem, which was reeling under pressure for over the last two years due to funding crunch, seems to have bounced back, at least for the country’s most coveted media property- Indian Premier League (IPL). 

Many startups have signed sponsorship deals with the official IPL broadcaster, the streamer of the tournament and franchise teams, signalling improved economic conditions and increased investor confidence. 

The number of startups has gone up to nearly 30 this year compared to 20 a year ago. Although it is still a mere 50 percent compared to 2022 when close to 60 startups landed on the IPL pitch, it can be termed a decent figure considering the tournament is clashing with the general elections and a lot of brands would want to save ad monies for the polls. 

While some of these startups had participated in the previous seasons of the T20 league as well, a few are new and have signed multi-year deals with franchises. However, the likes of Byju’s, Unacademy, PhonePe, Zepto, Spinny and Swiggy are still absent from the scene. 

“Many sponsors belong to the BFSI category, a segment which was believed to have reduced its marketing spends substantially over the last two years amid recessionary conditions globally,” a senior ad executive said. The list includes AMFI, Slice, Groww, UpStox, Tap with Gpay and Equitas. AMFI, Equitas and GPay are first-timers. 

Almost half of the sponsors for the IPL streaming partner-JioCinema-are startups. The platform has signed Dream11 as a co-presenting sponsor, while AMFI, PayZapp, Upstox, Cred, and Rapido have joined forces as associate sponsors. In 2023, JioCinema had only one startup-Dream11-among its list of 23 sponsors.   

Star Sports has joined hands with over 17 sponsors this year, of which four are startups-Dream11, Groww, and RuPay. Last season, the TV channel had signed 13 deals with only two startups, one being Dream11.

This year, the BCCI/IPL has only two startups- My11Circle and Rupay- among its seven associate partners. A year ago, it had CRED, Dream11, UpStox, and Rupay. 

IPL teams will have their hands full this season. Sports marketing firm Rise Worldwide has alone closed team partnerships worth around Rs 300 cr which includes five front-of-jersey deals. “We have witnessed an increase of 20 percent in the team sponsorship deals,” said Nikhil Bardia, Head of Rise Worldwide.

Team sponsorship revenue ranges from Rs 50 crore to Rs 100 crore, depending on the team. In 2024, it is estimated to increase by 10-20 percent, the sports head of a media agency said. 

Some of the deals are still in making, sources say. So far, only the schedule for the first two weeks of the IPL has been announced due to the general elections, with polling starting on April 19.

Startups had emerged as India’s top advertisers during the pandemic years 2020 and 2021, spending Rs 500 crore to Rs 2000 crore annually on advertising, including flashy IPL deals. Though some of them (Byjus, Unacademy and PayTm) collapsed midway amid financial downturns.  

Spending less

The number of startups has surely gone up this year but they are not spending as much, experts point out. For instance, crisis-hit fintech firm PayTm, which used to be IPL Umpire Sponsor, has settled with team sponsorships. Similarly, PayTm Insider is ticketing partner this year. 

“Barring Dream11 and My11Circle, most deals are with the teams and hence smaller in size, often in the range of Rs 10 crore to 20 crore,” said Ramachandran Venkatasubramanian, President - Investments, Havas Media India and MD, Havas Play.

Dream11 is reportedly spending Rs 400 crore-450 crore including its association with Star Sports, JioCinema and eight teams. The gaming firm is believed to be one the largest spenders in this tournament. In contrast, My11Circle which has replaced Dream11 as the IPL’s on-ground partner this year, is believed to be spending Rs 150 crore-175 crore. 

Sajal Gupta, CEO of Kioas Marketing, agrees with Venkat. “Startups are looking at selective cost-effective properties like digital inventory and team sponsorship. It's too early to say if there is any long-term change in the media spends, but a welcome move which needs to be observed for some time longer to be called a trend,” Gupta noted.  

Agencies ecstatic 

Nevertheless, media and creative agencies are in a celebratory mood. After all, IPL has been the biggest barometer to sense the ad market since its beginning. 

Anil Solanki, Senior Director Media Lead, dentsuX, says that surge in IPL partnerships has generated employment opportunities in both creative and media sectors, as brands celebrate the event with tailored IPL-specific campaigns. 

“Numerous media agencies, both small and large, have joined forces with their clients to capitalize on this trend, contributing to the creation of innovative strategies and campaigns,” Solankis noted. 

The IPL is a hugely successful and dynamic sports brand that has continued to evolve not just on the field but off the field as well. Teams want to onboard sponsors that are relevant to their fan base and want to engage and involve the fans through the sponsors, Bardia shares.