Homegrown real-money gaming platform WinZO has announced a strong financial performance for the year ending March 2024 with 70.4% growth in revenue to INR 1,055.22 crore from INR 619.42 crore in FY23. Adjusted profit after tax grew 151% to INR 315.12 crore from INR 125.71 crore in the previous fiscal.

But the topline and bottomline numbers come with a caveat. The reported net profit excludes a non-cash accounting expense of INR 999 crore due to the fair value treatment of Compulsorily Convertible Preference Shares (CCPS) as liabilities under Indian Accounting Standards (IndAS). With this expense included, WinZO posted a net loss of INR 684 crore for FY24.

This shift to IndAS from Indian GAAP (IGAAP) which started in FY23 is a big accounting change for the company, aligning with global reporting standards. CCPS which was considered equity under IGAAP is now classified as liability under IndAS until conversion—hence impacting the company’s numbers.

GST Overhaul Creates Regulatory Headwinds

WinZO’s FY24 performance also shows its resilience in a tough regulatory environment. The Indian government’s decision to impose 28% Goods and Services Tax (GST) on online gaming—applicable on the total entry amount rather than just the platform fee—came into effect from 1 October 2023. This regulatory change led to a 350-400% increase in tax outflows as per industry estimates.

Only six months of FY24 were under the new GST regime. The full-year impact will be seen in FY25 which will be a tougher year for real-money gaming companies.

WinZO co-founder Paavan Nanda said the GST change was a catalyst for faster global expansion, especially into Brazil where the company launched in October 2023.

Operational Metrics & Growth Drivers

WinZO’s FY24 operational numbers show a focus on mass-market gaming:

• 250 million registered users across India and Brazil.
• 40% share of India’s online gaming user base.
• 50+ casual games across genres—Ludo, Carrom, Chess, 8 Ball Pool—in 16 languages.
• 75,000+ creators and micro-influencers in Tier II and Tier III towns.
• 50+ patents filed for product and IP development.
• 200 people managing this big ecosystem.

Further, the company recorded a 3x rise in EBITDA to INR 397.2 crore, compared to INR 126.8 crore in FY23. Total expenses rose 35.8% to INR 693.37 crore, largely due to scaling operations, platform expansion, and international foray.

Funding, Competition, and Positioning

Founded in 2018 by Paavan Nanda and Saumya Singh Rathore, WinZO has raised USD 100 million (~INR 844.09 crore) from top global investors like Kalaari Capital, Griffin Gaming Partners, Courtside Ventures, and Maker’s Fund.

WinZO outpaced many of its peers in revenue growth in FY24:

• Zupee posted INR 1,123 crore revenue (+36.5%) and INR 146 crore profit (first full-year profit).
• Head Digital Works (A23 Poker/Rummy) reported INR 1,378 crore in revenue (+31%) and INR 72 crore PAT.
• Mobile Premier League (MPL) saw revenue grow 22% but posted a USD 44.9 million (~INR 379 crore) loss.
• Gameskraft with INR 3,475 crore in revenue (+30%) reported a 10.8% dip in net profit to INR 947 crore.

While WinZO’s adjusted profitability looks good, the actual loss (including CCPS impact) tells a different story. This highlights the importance of accounting interpretations in evaluating startup performance.

Vision and Future

According to its founders, WinZO wants to go beyond gaming and become a “globally scalable ecosystem rooted in Indian innovation.” The company has set aside a USD 50 million (~INR 422 crore) game development fund to back and acquire high-quality titles. It’s also exploring sports engagement formats that go beyond fantasy leagues, which means diversification within the skill-gaming space.

Looking ahead, WinZO’s path is tied to the ongoing legal and tax disputes in India’s online gaming industry. With the Supreme Court hearing a GST case on 5 May 2025, the clarity that emerges will shape the sector—and WinZO’s moves—in the next year.

Conclusion

WinZO’s FY24 results are a testament to its strong positioning, agile monetization and user-first innovation. But taxation and accounting adjustments create a complex picture for stakeholders and investors. As FY25 unfolds, we will see how WinZO navigates these challenges, scales globally and solidifies its position in the online gaming space. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.