Skill gaming unicorn MPL's global foray pays off; records 38% revenue from global markets in FY23

The company's revenues from the Indian market grew by 23 percent to Rs 521.8 crore ($64.7 million) in FY23 from Rs 424.4 crore ($57.2 million) in FY22. MPL's overall revenue grew to $104.63 million in FY23 registering a 63 percent increase from $64.2 million in FY22.

Losses narrowed sharply by 70 percent to $37 million in FY23 from $194.5 million in FY22. The company attributed this reduction in losses to a shift in its marketing strategy focused on ROI (return on investment) and optimisation of infrastructure costs.

Moneycontrol had reported in May 2022 that MPL had let go more than 100 people and exited the Indonesian market, amid a broader slowdown in the Indian startup ecosystem.

It's worth noting that the government recently imposed a 28 percent goods and services tax (GST) regime on the real-money gaming sector, which became effective from October 1, 2023. The new tax rates are expected to hit the revenues and profitability of many companies in the sector.

MPL had let go of 350 employees, which represents about 50 percent of its Indian workforce, following the announcement of the new tax regime in August 2023.

"The new rules will increase our tax burden by as much as 350-400 percent. As a business, one can prepare for a 50 percent or even a 100 percent increase, but adjusting to a sudden increase of magnitude means we need to make some very tough decisions," MPL co-founders Sai Srinivas and Shubh Malhotra said in an email to employees, Moneycontrol reported in August 2023.

Started in 2018 by Sai Srinivas and Shubh Malhotra, MPL offers over 60 games across categories such as daily fantasy sports, quizzing, board games, puzzles and casual games on its Android and iOS apps. It also claims to have over 90 million registered users across Asia, Europe, and North America.

MPL was last valued at $2.3 billion after raising a reported $150 million in September last year, which also marked its entry into the unicorn club.

It counts Peak XV (previously Sequoia India), SIG, RTP Global, Go-Ventures (now Argor Capital), Moore Strategic Ventures, Play Ventures, Base Partners, Telstra Ventures, and Founders Circle Capital among its investors.

Rival firm WinZO also expanded to Brazil in October 2023 to diversify its operations. Following this launch, over 100 developers could offer their mobile games to users in the Brazilian market.