Should startups place their bets on IPL?

When does a startup decide to invest in the Indian Premier League (IPL)? The answer seems simple: when they have the funds. But as several cases have demonstrated, having deep pockets isn't enough; timing and strategy are everything.

The IPL has evolved into a marketing battleground, valued at $12 billion in 2024, where brands fight for attention in India's most watched sporting event. For startups with ambition and resources, the allure is undeniable, but so are the risks.

"If you have the money to burn and are looking for a shortcut to fame, IPL is the platform—or else avoid it like the plague," warns Siddhartha Singh, COO, Infectious Advertising.

Singh's assessment cuts to the heart of what has become one of the most polarising marketing decisions for Indian startups. While the sports tournament offers visibility, it comes at a price that can make or break emerging companies.

Perhaps no startup better summarises the high-stakes gamble of IPL marketing than Dunzo. The quick-commerce platform had carved a unique space in India's competitive delivery landscape, building such strong customer loyalty that people would simply "Dunzo it" when they needed something delivered.

By 2022, with a $200 million investment from Reliance in its pocket, the brand appeared poised for growth and made what seemed like a bold marketing play: Spending Rs 400 million ($4.6 million) on a 20-second IPL ad campaign.

Initial results looked promising as traffic to the app skyrocketed during the tournament. But months later, the brand began struggling to meet financial obligations. By 2023, the company reportedly owed over Rs. 114 million in unpaid ad dues and vendor payments to Facebook, Google and numerous other partners.

What went wrong? The fundamental issue wasn't just the marketing spend but a larger strategic misstep. Dunzo had pivoted from its core strengths to compete in the quick-commerce sector against rivals with deeper funds.

Ambika Sharma, Founder of Pulp Strategy, sees this as a pattern among startups rushing to make a splash without establishing fundamentals.

"I feel there's a growing awareness that big visibility doesn't equal long-term value. We've all seen what happens when the cost of visibility outweighs business fundamentals."

While the IPL campaign itself wasn't solely responsible for Dunzo's troubles, it exemplifies how massive marketing expenditures can lead to growth and create problems for startups lacking stable unit economics.

However, not all IPL investments end in disaster. When CRED invested approximately Rs 120 crore in a three-year IPL partnership in 2020, its campaigns featuring Bollywood celebrities auditioning for CRED ads with the tagline "Not Everyone Gets It" resonated with audiences.

By October 2021, the brand reported a 700% increase in app downloads following its audition campaign. It doubled down the following year with the ‘Indiranagar ka Gunda’ ad featuring an angry Rahul Dravid, garnering over 4 million YouTube views in just four days.

Mahima Goel, Head of Strategy at Punt Partners, explains why these campaigns succeeded where others failed:

"IPL is one of the biggest—if not the biggest—sporting spectacles in the world in terms of the number of eyeballs it garners. However, it is important to remember that EVERYONE is going to be talking about the IPL. It's much harder for a brand to stand out and do something 'talkable' in an IPL context. That's where creativity really needs to shine."

CRED's approach worked because it didn't just spend big; it spent smart, creating memorable content. However, it faced challenges in FY23 when user growth slowed and customer dissatisfaction increased. It suffered losses by 5.3%, rising to Rs 1,347 crore from Rs 1,279.5 crore in FY22, while total expenditure jumped 66.4% to Rs 2,832 crore. This was driven by higher costs in marketing, IT, legal, payment processing, and professional fees.

Nevertheless, the brand shifted in the following year to OOH campaigns in 2023 with messages like "Our Only Ad This Year."

Simply put, IPL demands money. Is investing in the tournament worth it? 

The ROI equation

The fundamental question remains: Does IPL deliver returns that justify its astronomical costs? For most startups, the answer requires careful consideration of both tangible and intangible factors.

Mohit Hira, Venture Partner at YourNest Venture Capital, offers a perspective on how some founders approach the decision.

"I know of a founder who wanted to be part of the IPL because it would improve his valuation and funding in a subsequent round. But the investor, like the fabled wife that David Ogilvy had referred to, isn't a moron," he says. 

Hira cautions against viewing IPL as a shortcut to brand legitimacy or fundraising success. He suggests that startups need clear, strategic objectives beyond mere visibility. 

"Consider this: JioHotstar supposedly has over 30 sponsors this year and close to 1,100 advertisers. If the goal is to generate sales, and the brand gets enough visibility, it can work. But if you're unclear about your objectives, it can also be a bit like hitting the casino one evening."

Traditional ROI metrics often fail to capture the full impact of brand marketing at scale. While direct response campaigns yield clear cost-per-acquisition numbers, brand initiatives like IPL sponsorships work through less immediately measurable mechanisms like awareness, perception, and recall.

Despite this risk, IPL 2025 is seeing startups like Fancode, Boldfit, Dream11, Zomato, The Sleep Company, Vision 11, Fiat Pe, EaseMyTrip, boAt, Ebix Cash, ACKO, Wrogn, LivPure, bigbasket, Hangyo Ice cream, Third Wave Coffee, Medulance and more investing in it.

Tamanna Gupta, Founder of Umanshi Marketing, believes once a company surpasses a billion-dollar valuation and can afford high-stakes investments like IPL sponsorships, it's time to retire the startup tag.

This distinction matters because the marketing strategies appropriate for early-stage companies differ dramatically from those suitable for scaled-up enterprises with substantial funding. For established brands with national ambitions and the resources to match, IPL sponsorship leads to increased growth.

As Gupta notes, "The stakes are high, but the reward—instant household recognition—can supercharge brand-building and sales cycles through top-of-mind recall."

Where marketing spends are going instead

For most true startups, early-stage companies with limited resources and still-evolving business models, the prices needed to invest in IPL simply don't add up. Instead, they are directing their marketing spends toward channels offering more measurable returns.

Performance marketing is leading the investments, allowing startups to optimise based on direct conversions and actionable metrics. Digital content partnerships and influencer collaborations also rank high for their targeted impact and more manageable costs.

Goel explains, "Influencer marketing, hack-vertising and driving tactical, objective-driven campaigns is usually a higher priority for them since every spend is linked to ROI. That is far better achieved through targeted tactics rather than spending big in a space that is already cluttered."

These digital-first channels offer precise targeting, real-time tracking, and flexibility that traditional media can't match. 

Sharma notes that startups today prioritise establishing their fundamentals before considering a high-impact media property. 

"I believe brands are prioritising data infrastructure, marketing automation, and performance-led campaigns first—because that's where real growth and accountability lie. Once those basics are in place, the next level—brand storytelling at scale—can be layered in."

The right time to take the plunge

So when should a startup consider taking the IPL plunge? 

Sharma believes that startups need to earn the right to invest in IPL. This readiness comes from having established foundational elements first: 

"That means strong data, automation, product-market fit, and retention in place. I don't think it's a bad move—but it has to be a funded, strategic brand decision, not a shortcut."

Goel identifies two scenarios where IPL investment makes strategic sense.

"The right time for any brand to invest in a big-ticket campaign like IPL is when they have that kind of marketing budget and, more importantly, when they have developed a bit of risk appetite. Which usually happens when brands are either already well-established or are entirely new, high on big funding and want to take a big, flamboyant swing to announce their arrival in the market."

She cites CRED as an example, saying that it was relatively unknown before its IPL debut.

Singh adds, "For most startups, this would typically occur once they've established a solid customer base, achieved product-market fit, and have sufficient funding to sustain a long-term investment."

Dos and Don'ts for investment

For startups considering an IPL investment, leaders believe they should follow certain frameworks. 

Dos:

  • Get your basics right first, including data, marketing automation, and funnel clarity.

  • Align IPL with a larger brand moment, not as a standalone bet.

  • Build a 360-degree amplification plan across digital, creator, and owned channels.

Don'ts:

  • Don't use IPL to arrive before your brand is ready.

  • Don't rely on visibility to do the heavy lifting—IPL amplifies what's already working, it doesn't fix what's broken.

Singh emphasises, "The key 'dos' include ensuring that the target audience aligns with the event's demographics, setting clear objectives for the sponsorship (such as brand awareness vs. customer acquisition), and measuring the impact closely."

On the other hand, Hira adds that founders should question their true motivations.

"If it doesn't fit into a long-term strategic objective, why get lured by the IPL? If you have a great product ready for a pan-India launch, enough money to fund the campaign without compromising on paying salaries or product development, and can follow through with more marketing subsequently, please do consider the IPL."

Alternative playgrounds

For emerging brands unable or unwilling to commit IPL-level resources, there are increasing alternatives that offer better targeting and engagement relative to cost.

Regional sporting events like Pro Kabaddi League can deliver reach in Tier II and Tier III markets at a fraction of the IPL's price tag, according to Goel. Digital-first initiatives and micro-influencer partnerships can drive meaningful engagement among specific audience segments.

Goel points to an emerging opportunity that many brands are overlooking — Formula 1.

"After Drive to Survive on Netflix, F1 is the fastest growing sport in India in terms of viewer interest and every Formula 1 telecast is hotly anticipated."

Singh agrees and adds that targeting specific regional or community events can deliver more engaged audiences, and partnering with digital-first initiatives or micro-influencers can be highly effective in driving brand engagement.

The conversation around IPL marketing is evolving beyond simple yes-or-no decisions toward more strategic thinking about when and how to leverage such platforms.

Gupta notes, "Let's also dispel the myth that performance marketing alone drives success—if it did, global giants like Amazon wouldn't be spending crores on offline channels like OOH, print, and TVCs."

She shares, "The real strategy is meeting customers where they are—on their thumb (digital), at their feet (offline touchpoints), or close to their heart (cultural moments like IPL).”

For startups contemplating investing in IPL and beyond, the most important question isn't whether they can afford to participate, but whether they can afford not to focus on building a sustainable business first.

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