Gaming Startup WinZO’s FY23 Revenue Surges Nearly 3X To INR 674 Cr

Online gaming startup WinZO saw its consolidated operating revenue zoom nearly 3X to INR 673.94 Cr in the financial year ended March 31, 2023 (FY23). The Delhi NCR-based gaming major reported an operating revenue of INR 233.89 Cr in the previous fiscal year. 

Founded by Paavan Nanda and Saumya Singh in 2018, WinZO is an online skill-based gaming startup that partners third-party developers to host games on its mobile-based application. It earns revenue through platform fees charged from users for real-money games.

Including other income, the startup’s total revenue rose 2.8X to INR 690.71 Cr during the year under review from INR 244.8 Cr in FY22.

Despite the strong growth in operating revenue, WinZO’s net loss surged 1.9X to INR 710.15 Cr in FY23 from INR 370.1 Cr in the previous fiscal year.  

It must be noted that the gaming startup reported a non-operating expense of INR 835.9 Cr in FY23 due to change in fair value of compulsory convertible preference shares. Excluding this amount, WinZO posted a profit of INR 126 Cr during the year under review. 

In FY22, the startup reported a non-operating expense of INR 240.45 Cr.

Where Did Winzo Spend?

The gaming startup’s total expenditure increased 2.3X to INR 1,400.86 Cr during the year under review from INR 614.9 Cr in FY22. 

Employee Benefit Expenditure: Employee costs increased 1.9X to INR 54.81 Cr in FY23 from INR 28.79 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. Winzo spent INR 257.61 Cr in FY23 on advertising as compared to INR 198.61 Cr in FY22.

WinZO has raised a total funding of over $110 Mn till date and counts the likes of California-based Griffin Gaming Partners, gaming funds like Maker’s Fund and Courtside, and Kalaari Capital among its backers.

It is pertinent to note that the Indian online gaming sector is currently reeling under the impact of the 28% GST implemented on full face value for real-money gaming. The law also does not differentiate between games of skill and games of chance. 

Amid the tax troubles in the domestic market, WinZO said last year that it was planning to expand its presence by entering the Brazilian market.

Last year, WinZO also launched a $50 Mn ‘Game Developer Fund’ to invest in global startups across all forms of interactive entertainment – game developers and publishers, economies around gaming, content creation, live-ops, and security.