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

By Inc42 Media

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.

Source: Inc42 Media