Online gaming firm Zupee turns profitable in FY24, revenue up 35%

Online gaming platform Zupee registered its first full-year profitability since inception in FY24, the company's co-founder and chief executive officer Dilsher Singh Malhi said on Tuesday. Zupee, which started operations in 2018, witnessed a net profit of Rs 146 crore for the financial year ending March 31, 2024.

 

This marks a recovery from the Rs 36 crore loss the company posted the previous year (FY23).

 

Announcing its financial results, the company said its revenue rose 34.9 per cent from Rs 832 crore in FY23 to Rs 1,123 crore in FY24.

 

The strong financial performance came despite an increased tax burden due to the 28 per cent goods and services tax (GST) regime implemented in October 2023. "The full-year impact of the revised GST regime will reflect in FY25, even as we continue to advocate for a balanced tax framework that differentiates skill-based games from games of chance," the company said in a statement.

 

On the back of product-led growth and penetration beyond the North India market, the company had a 60 per cent increase in its registered user base and expanded its workforce by over 10 per cent, with focused hiring across product development, data science, technology and operations. The platform is currently available in over 4,000 cities and has over 130 million users.

 

“FY24 was a landmark year as we turned profitable, scaled significantly, and saw our games resonate with audiences far beyond our initial markets. Our focus on innovation, compliance and responsible gaming has positioned Zupee as a resilient player in India’s gaming market,” Malhi said.

 

In 2019, the Gurugram-based startup raised $1 million in a seed round. The next year, in 2020, the company raised $18 million in a Series A round, and in 2022, it raised $102 million in a Series B funding round. Zupee's investors include WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Matrix Partners India and Orios Venture Partners.