Method One’s surge in reputation, together with exhibits like Drive to Survive, has fueled curiosity about racing. However motorsports is an costly interest and comes with security rules that maintain many from experiencing the fun.
That’s the place simulation video games are available in. They shut the hole between desires and actuality, letting individuals attempt actions which might be usually costly or dangerous.
Additionally they function a device for leisure, schooling, and skill-building with the liberty to discover with out real-world limits. The market, value $1.8 billion in 2023, is predicted to develop at over 3% yearly by way of 2032.
The start of Digital Racing Hub
In 2020, Akshat Taneja and Pavitra Balakrishnan started gaming on their PlayStation 4, taking part in varied driving titles. Quickly, the duo wished to improve their gaming expertise to correct simulation racing tools.
“Simulation racing is the closest expertise to real-world racing, with out the dangers or prices concerned,” Balakrishnan says. It depends on specialised {hardware} that transforms online game racing into one thing that looks like driving an precise automotive, moderately than simply utilizing a controller.
Taneja and Balakrishnan quickly realised that high quality gear was merely not obtainable in India, which struck them as a big hole available in the market.
“If we weren’t capable of entry such tools, 1000’s of different fans have been in all probability dealing with the identical problem,” Balakrishnan explains. This was how their interest became a chance, and in 2021, they began Digital Racing Hub with an preliminary funding of Rs 50,000.
At the moment, Digital Racing Hub (VRH) sells and builds high-end racing simulators in India. The startup offers steering wheels, pedals, rigs, and VR setups from prime manufacturers, units up customized simulators for purchasers, and likewise hosts demo occasions so individuals can expertise simulation racing firsthand.
Its pricing is designed to cater to totally different audiences: entry-level B2C setups begin at round Rs 30,000, whereas turnkey B2B options sometimes start at Rs 5 lakh and scale with consumer necessities.
The shop runs primarily on-line but additionally operates an offline simulation arcade in Delhi, the place clients can check out the tools. “It’s an area for B2C clients to expertise merchandise firsthand earlier than making important investments,” says Balakrishnan. Since simulators are high-ticket purchases, most patrons want a hands-on demo earlier than committing.
Digital Racing Hub companions with gaming arenas throughout India, together with MIG in Chennai, GamersGuild in Hyderabad, Sportech in Larger Noida, Play Area in Bengaluru, LapOne in Kochi, and the Ministry of Esports in Pune. It additionally presents leases for model activations and runs a motorsports vertical, offering FIA-regulated tools for skilled athletes that’s in any other case arduous to entry in India because of excessive prices.
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Serving B2C and B2B clients
The corporate serves a various viewers, from adults over 25 to folks shopping for simulators for kids aspiring to racing careers. On the B2C aspect, it caters to newbies {and professional} drivers searching for high-end setups, whereas B2B shoppers embrace corporates, unique tools producers (OEMs), occasion corporations, and coaching institutes with specialised wants.
VRH builds on present platforms and video games, similar to these on Steam, which deal with fundamental animation and steering inputs. Its core worth lies in customising these methods for shoppers, together with including branding to trace signage and automotive designs.
The simulators are finely tuned to duplicate actual driving circumstances, from go-karts to full-size automobiles. “Skilled drivers typically want particular changes, and that is the place our experience turns into important,” says Balakrishnan.
After-sales assist is central to VRH’s strategy, with distant troubleshooting and steering to make sure setups carry out optimally. Coaching classes are additionally obtainable by way of its web site, even for non-customers searching for assist with software program or {hardware}.
From PS4 to gaming PC setups to full simulators, the founders finally moved into actual motorsports. This firsthand expertise helped them excellent merchandise to intently mimic precise racing, making the “simulation to actuality” idea central to VRH’s worth proposition. “We’re promoting desires by exhibiting that motorsports is accessible even with out prior expertise,” says Balakrishnan.
B2B progress and company partnerships
Being in a distinct segment market has labored in VRH’s favour. Whereas the viewers is smaller, it’s extremely engaged and keen to spend money on high quality, enabling income diversification throughout B2C, B2B, leases, occasions, and motorsports tools like FIA-approved helmets and gloves.
On the occasions aspect, VRH has collaborated with manufacturers together with JK Tyre, Toyota, Mercedes-Benz Silver Star, Hyundai, Volvo, and Udemy, organising simulators at expos, races, and company occasions. These setups make stalls extra participating, gamify the expertise with leaderboards, and appeal to potential patrons.
Occasions additionally function a discovery channel, producing leads and constructing long-term partnerships. The startup’s first main break got here when JK Tyre invited it to the Auto Expo, the place Hyundai noticed the simulators and have become VRH’s first company consumer, opening doorways to different OEMs and corporates.
VRH customises its options to every consumer’s wants. Some require full setups with software program integration and analytics for automotive growth, whereas others use simulators for coaching, similar to forklift setups, permitting the model’s workers to soundly observe high-risk situations, like accidents, that will be too harmful to duplicate in actual life.
What’s subsequent
VRH’s enterprise mannequin has developed from promoting tools and educating clients to offering absolutely put in, ready-to-use simulator options for a extra educated viewers. As simulation racing adoption grows, the client base has develop into extra subtle, searching for specialised options moderately than fundamental steering.
So far, VRH has served greater than 1,000 retail clients throughout India. The corporate says it has been worthwhile since day one and continues to see constant double-digit progress, with repeat enterprise and enterprise initiatives steadily contributing to its income combine.
Within the subsequent two years, it plans to develop {hardware} merchandise.
The Delhi-based startup can be engaged on creating e-learning and doubtlessly a SaaS-based simulation-driven studying platform with distant certification capabilities. Its e-learning section will consider driving and forklift coaching simulators in partnership with manufacturers.
Globally, corporations like Subsequent Stage Racing function on this house, however in India, there are only a few structured gamers, giving VRH a powerful early-mover benefit. The startup is at the moment searching for funding because the market continues to increase and is positioned as an early mover in a distinct segment that’s now gaining mainstream consideration. Its worldwide growth can be underway, with Thailand as the primary goal market, forming a part of a five-year plan for regional progress throughout Asia.
