Ever since the sudden wave of coronavirus pandemic, it has left no industry unchanged. Major companies as well as startups have taken a big hit during these times. The worldwide e-sports industry has seen a spike because of higher viewership but some e-sports companies are still struggling.
Bengaluru’s Hanusha E-Sports is one of the largest gaming lounges in India. Devin Xia founded the company in 2019. The lounge offers 90 state-of-the-art personal computers for players and can fit up to 150 visitors at a time. Their gaming centre is designed inspired by those abroad, from comfortable and functional designed chairs to advanced set up. It is provisioned to host online, multiplayer and LAN gaming competitions, massive screens are also set up for the audience to watch tournaments.
As per reports before covid outbreak, the gaming parlour used to attract over 50 customers per day. But now, hardly anybody steps out of their houses. Regular customers stopped coming in. The lockdown has severely affected the business. One of the biggest expenses for Hanusha is monthly rent of Rs 7,20,000 which will cause them a major loss since there is no source of income right now. The absence of customers has led to financial damages .Xia and his co-founders have spent up to INR 4 crore (USD 560,000) to outfit the store this was one of biggest investments for Indian e-sports in infrastructure.
It will also be difficult for the company to attract funding now since no investors will be seeking interest in new projects. The company claims that they are working on innovative models so as not to succumb during this crisis, by selling their fixed assets to people on social media (https://www.instagram.com/p/B_2gRHMjptj/). They have also mentioned that they are going to relocate soon and have bigger events coming which they will be updating about soon.
Sources reported to Bizbehindsports that the company has let go of many of their staff and is planning on winding up business in India. An outbreak of a pandemic during the initial stages of growth has made a major impact on the company. In the upcoming weeks we will have a clearer picture of how Hanusha E-sports deals with the crisis.