18 Dec Zupee: Online gaming platform Zupee’s FY23 operating revenue more than doubles to Rs 831.5 crore
The Gurugram-based company also narrowed its net loss 72% to Rs 36.5 crore last year, thanks to slower increase in expense than revenue growth, according to the company’s regulatory filings sourced from business intelligence platform Tofler.
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Zupee’s robust revenue performance mirrors those of online gaming firms such as Gameskraft and Mobile Premier League (MPL) in FY23, prior to the impact of the goods and services tax (GST). Online real-money gaming firms were hit with a GST of 28% on full-face value from FY24, as against the 18% tax previously paid on the platform fees they charge users.
Zupee’s total expenses rose 66% to Rs 900.78 crore in FY23. This was mainly due to an 85% jump in advertising and promotional expenses to Rs 703.33 crore, which included marketing costs, as well as cashbacks and bonuses given to users.
Founded in 2018 by Dilsher Malhi and Siddhant Saurabh, Zupee offers games such as ludo, snakes and ladders, and even quiz games, allowing users to win real money by playing these games.
The company said it charges players a fee, known as a platform fee, which is a “specified percentage of total gaming transaction”. It recognises the platform fees as revenue.
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ET reported on December 6 that MPL saw its net loss narrow significantly to $37.04 million in FY23, from $194.47 million in the previous year. Revenue grew 63% on-year amid a decline in expenses.Similarly, Bengaluru-based bootstrapped online gaming firm Gameskraft reported revenue from operations of Rs 2,662 crore in FY23, up nearly 25%. Gameskraft’s net profit also rose 14.2% on-year to Rs 1,062 crore.