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Winzo: Gaming its Way to Profitable Growth"






The Delhi-based online gaming startup Winzo experienced a remarkable 2.8X growth in its scale in the fiscal year ending March 2023, alongside an impressive profit of Rs 126 crore. Established in 2018, Winzo offers a diverse range of over 100 games, including strategy, sports, casual, card, arcade, racing, action, and board games.


The primary revenue drivers for Winzo are the service fees from real money games and the sale of digital or in-app vouchers. In FY23, its revenue from operations surged to Rs 674 crore from Rs 234 crore in FY22. Additionally, the company earned Rs 16.78 crore from interest, bringing its total revenue to Rs 691 crore.


Like many online gaming platforms, Winzo allocated a significant portion (46% of total expenditure) to marketing, which increased by 29.6% to Rs 258 crore in FY23. Overall expenditure rose to Rs 564 crore from Rs 375 crore in FY22, attributed to costs such as employee benefits, legal-professional fees, agent commissions, gaming costs, and other overheads.


Despite the increased expenditure, Winzo reported a substantial profit of Rs 126 crore in FY23, a significant improvement from the Rs 130 crore loss in FY22. Its ROCE and EBITDA margin also saw improvements to 27% and 19% respectively. The company spent Rs 0.84 to earn a rupee in FY23.


Winzo has raised approximately $100 million to date, with Makers Fund being the largest external stakeholder with 15.77% ownership, followed by Griffin Gaming Partners and Courtside Ventures.

The substantial increase in profits highlights the potential for growth in the gaming industry. While future investments in new game development and marketing are inevitable, maintaining margins may prove challenging. However, with a growing user base in India, Winzo is poised for further growth and could potentially become India's next high-growth unicorn in the gaming sector.

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