In the fiscal year 2023, WinZO, a prominent gaming startup based in Delhi NCR, witnessed a significant growth in its operating revenue, which nearly tripled. Established by Paavan Nanda and Saumya Singh in 2018, WinZO has carved a niche in the online skill-based gaming industry by collaborating with third-party developers and hosting games on its mobile application. The revenue primarily comes from platform fees collected for real-money games. This report delves into the financial details, expenditure patterns, and strategic moves of WinZO during FY23.


Financial Growth: WinZO's consolidated operating revenue for FY23 soared to INR 673.94 Cr, marking a nearly threefold increase from the previous fiscal year's INR 233.89 Cr. The total revenue, including other income, also experienced a significant rise, reaching INR 690.71 Cr, up from INR 244.8 Cr in FY22.


Challenges and Expenses: Despite the robust revenue growth, WinZO faced challenges, as evidenced by a substantial increase in its net loss, which went up by 1.9 times to INR 710.15 Cr. This was mainly due to a non-operating expense of INR 835.9 Cr linked to changes in the fair value of compulsory convertible preference shares. Excluding this item, WinZO would have posted a profit of INR 126 Cr.


Expenditure Analysis: Total expenses for WinZO rose to INR 1,400.86 Cr in FY23, a 2.3 times increase from INR 614.9 Cr in the previous year. Key areas of spending included:

  • Employee Benefit Expenditure: Costs related to employee benefits surged by 1.9 times to INR 54.81 Cr.
  • Advertising and Promotional Expenses: The company spent INR 257.61 Cr on marketing, a significant increase from INR 198.61 Cr in FY22.


Strategic Initiatives and Market Expansion: Amidst the regulatory challenges in the Indian market, particularly the 28% GST on real-money gaming, WinZO has been exploring international expansion. The company expressed plans to enter the Brazilian market and also established a $50 Mn 'Game Developer Fund' to support global startups in various sectors of interactive entertainment.


Conclusion: WinZO's financial journey in FY23 highlights a dynamic mix of explosive revenue growth coupled with significant challenges. The company's strategic investments and expansion plans reflect a proactive approach to navigating a complex regulatory environment and capitalizing on global opportunities.


Meta Description: Explore WinZO's FY23 financial performance, including revenue growth, expenditure details, and strategic initiatives amid challenges in the gaming sector.