Real money gaming platform Games24x7 has recorded significant growth in FY23, with its revenue from operations increasing by 70.1% year-on-year to reach Rs 1,988 crore, up from Rs 1,169 crore in FY22.
The Mumbai-based company’s consolidated financial statements, filed with the Registrar of Companies, indicate that the firm effectively managed its expenditure on employee benefits and advertising, thereby keeping its losses in check during the same period.
Games24x7, which operates popular platforms such as RummyCircle and the fantasy sports platform My11Circle, derives 99% of its operating income from the platform fees collected for joining tournaments or contests. The remaining operating revenue is generated from selling virtual items in its freemium games. Additionally, the company reported Rs 35 crore from interest and gains on current investments, bringing its total income to Rs 2,023 crore in FY23.
The company’s advertisement and business promotion expenses accounted for a significant portion of its overall expenditure, surging by 61.7% to Rs 1,421 crore in FY23, compared to Rs 879 crore in FY22. Despite this increase, the firm managed to control its spending on employee benefits, legal fees, travel, training, recruitment, subscription memberships, and other overheads, which collectively contributed to a 43.4% rise in overall expenditure, totaling Rs 2,147 crore in FY23.
This strategic approach to cost management, combined with robust revenue growth, led to a reduction in the firm’s losses, which decreased to Rs 199 crore in FY23 from Rs 282 crore in FY22. The company also saw improvements in its ROCE and EBITDA margin, which rose to -18% and -4.6%, respectively. On a per-unit basis, Games24x7 spent Rs 1.08 to earn a rupee in FY23.
To date, Games24x7 has raised over $107 million, including a $75 million round led by Malabar Investment, which valued the company at $2.5 billion. According to startup data intelligence platform TheKredible, Tiger Global is the largest external stakeholder, holding a 22.39% stake.
In a strategic move, Games24x7’s My11Circle became the official fantasy sports partner for the Indian Premier League (IPL) for five years, outbidding its rival Dream11. The company also announced a threefold increase in its marketing investment this year, which is expected to impact its financial performance in FY25.
