Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%

Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%

SUMMARY

The gaming startup reported an operating revenue of INR 1,988.10 Cr in FY23, an increase of 1.7X from INR 1,169.30 Cr in FY22

On the back of the rise in its revenue, Games24X7 managed to narrow its loss by 29% to INR 199.60 Cr in FY23

Total expenditure increased 1.4X to INR 2,147.40 Cr during the year under review, with advertising cost accounting for INR 1,420.8 Cr

Mumbai-based gaming unicorn Games24X7’s operating revenue surged closer to the INR 2,000 Cr mark in the financial year 2022-23 (FY23). The startup’s consolidated revenue from operations grew 1.7X to INR 1,988.10 Cr from INR 1,169.30 Cr in FY22.

Founded by Bhavin Pandya and Trivikraman Thampy in 2006, Games24X7 earns revenue from the entry fees paid by the users to play various games on the platform. It also gets revenue from in-game virtual purchases made by users to enhance their gaming experience.

Including other income, the startup’s total revenue rose 1.7X to INR 2,023 Cr during the year under review from INR 1,182.5 Cr in FY22.

On the back of the rise in its revenue, the unicorn managed to narrow its loss by 29% to INR 199.60 Cr in FY23 from INR 282.40 Cr in FY22. However, it is pertinent to note that Games24X7 posted net profits of INR 110 Cr in FY21 and INR 383.7 Cr in FY20.

Where Did The Gaming Unicorn Spend?

Total expenditure increased 1.4X to INR 2,147.40 Cr during the year under review from INR 1,497.20 Cr in FY22.

Employee Benefit Expenditure: Games24X7’s employee costs zoomed 1.2X to INR 446 Cr in FY23 from INR 373 Cr in FY22. Employee benefit expenses include salaries, PF contribution, gratuity, among others.

Advertising Promotional Expenses: Marketing and promotional activities have traditionally been one the biggest contributors to the total expenses of most of the gaming startups. The gaming unicorn spent INR 1,420.8 Cr in FY23 on advertising as compared to INR 878.9 Cr in the previous fiscal year.

Games24X7 offers games like RummyCircle and My11Circle. The startup competes with the likes of Dream11 and MPL.

Games24x7 entered the unicorn club after raising $75 Mn in a funding round led by Malabar Investment in 2022. It counts Tiger Global and Raine Group among its investors.

Last year, the parent entity of Games24x7 reportedly received a notice amounting to INR 21,000 Cr from tax authorities. In December, the Supreme Court refused to grant an interim relief against Goods and Services Tax (GST) demand notices to Games24X7, and Head Digital Works.

You have reached your limit of free stories
Unlock The Ultimate Startup Intelligence With Inc42 Plus

Join 10,000+ Startup Founders & Leaders And Gain The Ultimate Startup Edge

Prices Increases In
countdownmail.com
2 YEAR PLAN
₹19999
₹5999
₹249/Month
UNLOCK 70% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹3499
₹291/Month
UNLOCK 65% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%-Inc42 Media
Games24X7 FY23: Operating Revenue Nears INR 2,000 Cr Mark, Loss Declines 29%-Inc42 Media
You’re in Good company