IPL 2022: It’s game on for start-ups  

The ongoing Tata IPL 2022 has turned out to be an extravaganza for start-ups with more than 60 start-ups coming on board as official on-ground partner, streaming partners and team sponsors. Interestingly, as many as 18 of them are fintech companies, such as Paytm, CRED, Upstox, Open, Slice and Credenc. 

Some of the start-ups participating in this year’s IPL include regular promoters like Dream11 and Unacademy, and first-timers like Ather Energy and Spinny. 

Among the nine on-ground sponsors (official partners) of the tournament, barring Aramco (Saudi oil major) and CEAT (Indian tyre maker), all are start-ups.

At least 40 start-ups are supporting various teams as well, with some of them backing more than one franchise. 

The official broadcaster – Star Sports – has roped in 14 sponsors. Eight of them are start-ups – Dream11, Tata Neu, Byju’s being co-presenting sponsors; CRED, PhonePe, Spotify, Swiggy Instamart and Meesho as associate sponsors. 

Similarly, Disney+Hotstar have taken on 18 sponsors with 12 of them being start-ups: Dream11, CRED Tata Neu, Zepto, Spinny, Pristyn Care, Swiggy, RuPay, Ather, Livspace, NiyoX, Spotify. 

Funded by venture capitalists, many of these IPL sponsors have either acquired the Unicorn status or are close to becoming ones. Some are even listed among India’s top advertisers, largely by sponsoring big property events like IPL, ICC World Cup and the Olympics.

IPL: A successful start-up itself 

Cricket has historically been a great platform for companies to connect with Indian consumers, and so when IPL was launched in 2008 it was regarded as an advertisers’ paradise. In fact, IPL itself was a start-up that targeted young and aspirational India.

“IPL is such a strong property now that each advertiser will be noticed by millions. No other property assures the kind of visibility that IPL provides,” says Jigar Rambhia, National Director-Sports and Entertainment Sponsorships, Wavemaker India, who has been associated with the IPL since its inception. 

While IPL itself is a great success story, the sheer number of start-ups associated with it is also a testament to the growth of India’s start-up ecosystem. 
According to industry observers, with more than 400 million views in the 2021 season, the league has emerged as the biggest platform for new-age tech companies to get noticed by both young consumers and global investors. 

“The short and glamorous avatar of cricket appeals to men and women viewers equally. At present, women viewers account for about 48% of the IPL audience,” Rambhia noted.

The viewership and reach of IPL are expected to further increase this time, primarily because 74 matches will be played this season compared to the earlier 60 matches due to the inclusion of two additional teams. Digital is also poised to do well, considering the increase in digital media consumption patterns among the younger generations, Rambhia further said. 

Lloyd Mathias, Strategist and Investor, says, “For start-ups, the IPL provides a great platform to drive quick visibility at a national scale to an audience that’s decidedly more affluent than traditional fare based on movies. While this does come at a cost, they see it as a good investment to get pan-India reach and exposure.” 

CoinSwitch Kuber, for instance, saw a 3.5-fold growth in sign-ups after an ad blitzkrieg in IPL 2021. 

Crypto firms have so far stayed away from IPL as the government of India is still in the process of making a law to regulate them. 

Why so many fintech brands?

Explaining why so many fintech start-ups are making a beeline for IPL, Harish Bijoor, Brand Guru & Founder, Harish Bijoor Consults Inc., says, “Among a sea of offerings that fintech companies bring to the market, the only differentiation is branding. IPL offers completely unknown fintech names a chance to look more known and more recognised. Hence the queue!”

As for Mathias, “For fintechs, there is the added bonus of driving uptick – as in app downloads following IPL sponsorship– which in turn boost their valuations.” 

For some, its long-term investment 

Many start-ups that tasted quick success through the IPL have continued their association with the league. For instance, several healthcare brands see IPL as a long-term investment. 

Corroborating this, Gagan Arora, CMO of Pristyn Care, says, “IPL is a long-term investment. Although it runs for two months only, the visibility and awareness for brands get an upward jump with key metrics taking precedence over direct ROI. After 12 -18 months, the ROIs are really healthy with a big impact on growth. We have seen that in 2021, and hope to see the same this time as well.”

Money matters

While the financial details of these sponsorship deals are not known, industry watchers say the cost varies and depends on the type of association. 

As per media reports, IPL’s official sponsors each have to shell out around Rs 40-45 crore, while umpire sponsors cost Rs 28 crore and jersey partners stand at Rs 1-15 crore based on the ad space. 

BCCI secretary Jay Shah recently said the cricketing body hopes to earn more than Rs 1,000 crore this season. It is common knowledge that most of this money comes through sponsorships. The revenue earned is likely to be higher this season, mainly for two reasons – the number of teams has gone up from 8 to 10 and the count of sponsors is also more.