Zupee turns profitable with Rs 146 crore PAT in FY24; revenue crosses Rs 1,000 crore mark

This strong financial performance came despite an increased tax burden due to 28 percent goods and services tax (GST) regime implemented in October 2023.

Zupee said that it sustained its momentum during this period through "operational agility, early adaptability, and a product-first approach." The company, however, noted that the full-year impact of the revised GST regime will reflect in FY25.

Founded by Malhi and Siddhant Saurabh, Zupee offers a range of skill-based board games, with a particular focus on Ludo. The company offers online free-to-play games as well as paid cash games that let people earn actual money. Zupee's portfolio also includes online real-money gaming variants of Snakes and Ladders and Trump Cards.

The Gurugram-based startup makes money by charging platform fees from players for allowing them to access real-money games hosted on its platform.

Malhi said they currently have over 130 million registered users, registering a 60 percent increase in the past year as the Gurugram-based company expanded its presence beyond its core North Indian markets to other parts of the country.

Zupee was last valued at $600 million when it raised a $102 million funding round in January 2022. The company has raised a total of over $121 million to date and counts WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Matrix Partners India and Orios Venture Partners among its investors. It has over 300 employees.

Zupee stated that it expanded its workforce by over 10 percent in FY24, with focused hiring across functions such as product development, data science, technology, and operations.

"FY24 was a landmark year as we turned profitable, scaled significantly, and saw our games resonate with audiences far beyond our initial markets. We didn’t just grow; we built an entirely new category in India’s gaming landscape. Our growth proves that games rooted in culture transcend geographies and generations," Malhi said.

The Indian gaming industry reported revenues of $3.8 billion for the financial year 2024, a 22.6 percent growth from $3.1 billion in FY23, according to a report by the gaming and interactive media venture fund Lumikai. Of the $3.8 billion in revenue, about $2.4 billion came from the real-money gaming segment.

The report also said the sector is estimated to cross $9.2 billion in revenue by FY29 at a 20 percent CAGR over the next five years.

In January, Head Digital Works, the owner of the online rummy platform A23 Rummy and poker site A23 Poker, saw a 31 percent increase in its consolidated gross revenue from operations to Rs 1,378 crore in FY24, from Rs 1,051 crore in FY23. Profit after tax (PAT) was at Rs 72 crore in FY24, a 24% increase from Rs 58 crore in FY23.

In October, M-League, the parent company of Bengaluru-based skill gaming unicorn Mobile Premier League (MPL), also reported a 22 percent revenue jump in FY24. The firm posted a post-tax loss of $44.9 million in FY24 against $37 million in the previous year.

The startup, however, said that it achieved break even with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $0.2 million in FY24.