Are Startups Losing Interest In IPL 2023 Sponsorship Deals?

Cricket's most glamorous league has been the eye candy of startups and businesses looking to promote their brands since its inception in 2008.

Which brands have been IPL's title sponsors in the past? 

Renowned brands such as  DLF (2008 to 2012), Pepsi (2013 to 2015), Vivo IPL (2016 to 2019), Dream11 (2020), Vivo IPL (2021), and TATA (2022-2023) have partnered with the league in a bid to gain more popularity and become a household name. 

There has never been a dearth of startups partnering with the IPL teams to endorse their brand. However, this time the big boys of the consumer internet sector seem to have taken a step back. 

Why have startups and brands refrained from sponsorships and advertising in IPL 2023?  

Funding Winter - Well, they are sitting out this year's edition due to the funding winter. It's like the tech industry globally decided to press the reset button, and the IPL got caught in the crossfire. Companies like Byju's, Unacademy, PhonePe, Amazon Prime, Pristyn Care, Zepto, Niyo, and Spotify, among others, have folded their cards from sponsorship. Meesho and Cars24 are two additional tech startups that sponsored IPL teams in earlier seasons but decided not to participate this time around. Ather Energy will still work with the Gujarat Titans, though.

What is Funding Winter?

Funding winter is a term used to describe a period of time when venture capital firms become as scarce as hen's teeth when it comes to investing in startups. It's a time when entrepreneurs are left out in the cold, their dreams of launching their businesses left high and dry like a fish out of water. 

It's like the IPL is a big fat party, and these companies decided to be wallflowers this time around. Maybe they realized that money doesn't grow on trees and that they should not put all their eggs in one basket.

According to Venture Intelligence, funding for Indian startups fell by a third, leaving many startup founders feeling like they hit a speed bump on the highway to success. It seems like startups and unicorns are now tightening their belts and penny-pinching in order to keep their heads above water. It seems venture capitalists have decided to slow their roll when it comes to investing in Indian startups. In fact, according to a report by IVCA and EY, venture capital investments fell by a whopping 27% in April 2022.

COVID - The COVID-19 pandemic has bowled the Indian Premier League (IPL) over, leaving it spinning in circles like a top. The tournament has been jolted by delays and location changes like bumpy rickshaw rides through the streets of Mumbai. The pandemic has caused such a stir that some companies have decided to duck out of this year's edition like a cleverly evading batsman.

Which startups and brands were associated with IPL in 2022? 

IPL 2022 turned out to be a real jackpot for startups. Over 60 startups signed up as official on-ground partners, streaming partners, and team sponsors.

The official broadcaster, Star Sports managed to bag 14 sponsors, out of which eight were startups. CRED, PhonePe, Spotify, Swiggy Instamart, and Meesho were among the associate sponsors, and they were joined by Dream11, Tata Neu, and Byjus. On Disney+Hotstar, 12 of the 18 sponsors were startups, including Dream11, CRED, Tata Neu, Zepto, Spinny, Pristyn Care, Swiggy, RuPay, Ather, Livspace, NiyoX, and Spotify. Additionally, more than 40 startups were funding different teams, some of which were financing multiple franchises. The 15th edition of the IPL had 29 Indian startups as sponsors, with 10 of them being from the fintech sector including the likes of Paytm, Fino Payments Bank, and Slice. The IPL 2022 had actually evolved into a startup event.

Which startups have signed up with BCCI for IPL 2023? 

Dream11, Cred, Upstox, and Swiggy Instamart are more recent businesses that have joined the Board of Control for Cricket in India (BCCI) as authorized IPL partners.

Certain reasons have put a dampener on companies' eagerness to sponsor or advertise during the IPL like a wet blanket. However, the IPL still promises to score big on the entertainment and revenue fronts for the BCCI and its partners, like a well-executed cricket shot that clears the boundary ropes with ease. 

Where can viewers watch IPL 2023? 

The Indian Premier League is set to begin on March 31 at the Narendra Modi Stadium in Ahmedabad with a clash between the master and the apprentice, i.e. Chennai Super Kings led by MS Dhoni locking horns with Hardik Pandya-led Gujarat Titans. The viewers can catch all the exciting action on Jio Cinema for free.