Sea’s Garena postpones Free Fire India’s relaunch by several weeks

Published on 7 Nov 2023  

Garena has implemented strategic measures to address data security and user privacy concerns, but the date of Free Fire’s return to the Indian market remains uncertain.

In a surprising twist, game developer Garena announced on September 4 that it would postpone the relaunch of Free Fire, its renowned battle royale game title, in India by several weeks. While the company’s initial plan was to reintroduce the game in the Indian market by September 5, the relaunch has not occurred as of November 7, with no official updates regarding a specific date.

Free Fire, which gained immense popularity since its launch in 2017, accumulated over a billion downloads on the Google Play Store by 2021. However, its ban in India significantly impacted the broader strategies of Sea, Garena’s parent company. In response to the ban, Sea revised its bookings for its gaming business, reducing the estimate of cash spent by users to around USD 3 billion in 2022, down from USD 4.6 billion the previous year.

This ban also had a substantial effect on Sea’s market valuation, resulting in a USD 16 billion loss in market capitalization within a single day. Notably, the ban occurred amidst a sell-off of Sea’s stock, with the company closing at USD 114 on March 17, 2022, far below its all-time high of USD 372. Prior to the ban, Free Fire had around 40 million monthly active users in India, highlighting its popularity

In 2022, the alleged connection between the Chinese tech conglomerate Tencent and Sea raised concerns about data security and user privacy at Garena. Tencent is a shareholder of Sea, despite its limited involvement in Garena’s operations. Free Fire was not the sole target of the Indian government, with a bevy of other Chinese-associated or Chinese-developed apps also subjected to bans, including PUBG Mobile, a gaming title owned by Tencent Games.

address these concerns and facilitate its return, Garena has taken several strategic steps. These include reducing Tencent’s stake in the company and engaging Yotta Infrastructure Solutions, a reputable data center operator in India. Yotta has been tasked with managing the personal data of Indian users on local servers and network connectivity services to support Garena’s product offerings in India, including esports.

Garena has also appointed Mahendra Singh Dhoni as its brand ambassador to reconnect with Indian audiences. Dhoni’s status in the cricket-crazy nation is expected to play a crucial role in the reintroduction of Free Fire, leveraging his popularity to resonate with Indian gamers and rebuild the game’s presence in the Indian market.