The gaming startup had reported a profit of INR 110 Cr in FY21 and INR 383.7 Cr in FY20
Games24x7’s revenue from operations declined 25.2% YoY to INR 1,156.4 Cr in FY22
The gaming unicorn’s total expenses rose 1.5% YoY to INR 1,432.7 Cr in FY22
Mumbai-based gaming platform Games24x7 slipped into the red in the financial year 2021-22 (FY22), reporting a loss of INR 230 Cr on the back of a sharp decline in its operating revenue. The gaming startup had registered a profit of INR 110 Cr in FY21 and INR 383.7 Cr in FY20.
The Mumbai-based startup’s total revenue tanked 25% to INR 1,170.3 Cr in FY22 from INR 1,562.5 Cr in FY21. Games24x7, which entered the unicorn club earlier this year, saw its revenue from operations decline 25.2% year-on-year (YoY) to INR 1,156.4 Cr in FY22. The revenue from operations was lower than INR 1,300.9 Cr in FY20.
In FY21, the startup’s operating revenue had grown 19.6% YoY to INR 1,556.7 Cr due to rise in the number of players on its fantasy sports platform My11 Circle and its online card game RummyCircle.
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.
Meanwhile, despite the drop in its revenue, the gaming platform’s total expenses rose 1.5% to INR 1,432.7 Cr in FY22 from INR 1,411 Cr in FY21 on the back of increase in its employee benefit expenses.
Employee benefit expenses jumped 1.7X to INR 357.8 Cr from INR 202.7 Cr in FY21. Employee benefit expenses mostly comprise employee wages, PF contributions, gratuity, and other employee welfare benefits. The surge in employee benefit expenses indicates that the startup increased its employee headcount during the year under review.
The marketing and promotional expenses stood at INR 877 Cr in FY22 as against INR 977.7 Cr in FY21.
Founded by Bhavin Pandya and Trivikraman Thampy in 2006, Games24x7 houses popular brands such as RummyCircle, My11 Circle, and casual games hub U Games.
Last week, the startup launched its corporate investment arm Games24X7 Ventures, which will invest INR 400 Cr over 5 years in early-stage startups.
Games24x7 turned unicorn in March this year after raising $75 Mn in its Series C round, becoming the third Indian gaming platform to enter the coveted club. Inc42 exclusively reported on the development then. The round was led by Malabar India Fund, in participation with Tiger Global.
Games24X7 competes with the likes of Dream11, MPL, PlayRummy, and JungleeRummy.