Skill-gaming firm Head Digital Works concludes $3-million ESOP buyback

Nearly half of Head Digital Works' employee base of over 500 benefited from the buyback.

Head Digital Works has completed its first-ever employee stock option plan (ESOP) buyback programme of $3 million, the skill- gaming platform said on November 7.

The move comes amid a turbulent period for the country's skill-gaming sector, which is facing a slew of headwinds, including challenges posed by a 28 percent goods and services tax (GST).

Among eligible ESOP holders, 97 percent opted to sell a portion of their vested stocks. Nearly half of the firm's over 500 employees benefited from the buyback, Head Digital Works said.

"Despite the current challenges in the industry, we have been mindful of our operations and are focused on ensuring stability and growth. With this ESOP buyback, we want to thank our employees for their dedication and hard work" Head Digital works founder Deepak Gullapalli said in a statement.

"This is the first in our 18-year history, and with more to follow, it demonstrates our commitment to long-term wealth creation for our employees."

Head Digital Works, which is majority-owned by Canadian private equity firm Clairvest, operates platforms like A23 Rummy, A23 Poker, and Cricket.com. The company claims to have 70 million registered users across platforms.

In October, skill-gaming platform WinZO announced the conclusion of its fourth round of ESOP liquidation. As reported by Moneycontrol, the offer was extended to about 40 percent of the company's 200-member workforce, of which 32 percent liquidated.

Real-money games, where transfer of money is involved, form the bulk of revenue of India's gaming industry, which clocked a topline of $3.1 billion in FY23, a 19 percent growth from $2.6 billion in FY22. The sector is expected to touch an estimated $7.5 billion by FY28.