Real-money gaming platform Zupee has reached a significant milestone by turning profitable in FY24. This marks the first full fiscal year of profitability for the company since its inception in 2018. With a profit after tax (PAT) of ₹146 Cr in FY24, compared to a loss of ₹36 Cr in FY23, Zupee has demonstrated remarkable financial growth. The company’s revenue surged by 36.5%, reaching ₹1,123 Cr, up from ₹823 Cr in the previous fiscal year. Despite facing challenges such as the introduction of 28% GST on the full face value of bets from October 1, 2023, Zupee managed to maintain momentum by focusing on product innovation and adaptability.
Founded by Dilsher Malhi and Siddhant Saurabh, Zupee specializes in online casual games like Ludo, Snakes & Ladders, and Trump Cards. It has amassed over 100 million users across 4,000 cities. The company raised $102 Mn in 2022 and was last valued at $600 Mn. Marketing and user incentives remained the largest cost segment, totaling ₹806 Cr, followed by employee benefits at ₹107 Cr.
Zupee competes with other real-money gaming giants like Dream11, MPL, WinZO, and Gameskraft. The company’s strategic choices and agility have helped it thrive in an industry currently facing significant regulatory scrutiny. With plans to expand into fantasy gaming and card games, Zupee is poised to diversify and scale further. However, cofounder Malhi emphasized that regulatory clarity remains crucial before any IPO considerations.
1. Zupee Profitable in FY24
Zupee Profitable in FY24 is not just a headline—it is a strategic victory in an otherwise turbulent year for real-money gaming in India. The company ended FY24 with a ₹146 Cr PAT, signaling robust financial management and sustained growth in user engagement. This performance comes even as the GST Council imposed a steep 28% tax on the face value of bets midway through the fiscal year.
2. Zupee’s Business Model and Product Portfolio
2.1 How Zupee Works
Zupee operates in the real-money gaming sector, allowing users to play skill-based games for cash rewards. Its primary offerings include online Ludo, Trump Cards, and Snakes & Ladders, all adapted for competitive play. These games are available through its app, which is accessible in multiple Indian languages and aims to attract players from Tier II and Tier III cities.
2.2 Revenue Streams
Zupee generates revenue by collecting entry fees from users who participate in paid gaming tournaments. A share of the collected amount is distributed as prize money, while the remaining portion contributes to Zupee’s revenue. In FY24, Zupee earned ₹1,123 Cr in revenue, up from ₹823 Cr in FY23, marking a 36.5% increase.
2.3 Founders and Funding Journey
Zupee was founded in 2018 by Dilsher Malhi and Siddhant Saurabh. Both founders brought a strong product and technology focus to the table. In 2022, the company raised $102 Mn in a funding round led by Nepean Capital, pushing its valuation to $600 Mn. These funds helped Zupee scale operations, invest in product innovation, and expand user acquisition efforts.
3. Financial Performance in Detail
3.1 Revenue and Profit Growth
Zupee Profitable in FY24 becomes all the more significant when juxtaposed with its previous year’s losses. In FY23, the company posted a loss of ₹36 Cr. FY24 flipped that narrative with a ₹146 Cr PAT. Total expenses for FY24 were ₹1,019 Cr compared to ₹911.9 Cr in FY23, an increase of just 11.7%, showcasing tight cost controls.
3.2 Major Expense Heads
Marketing and user incentives dominated Zupee’s expenses, accounting for ₹806 Cr in FY24. Employee benefit expenses rose slightly to ₹107 Cr from ₹96 Cr in FY23. These investments are seen as critical to maintaining and expanding Zupee’s user base, which now exceeds 100 million.
4. Regulatory Landscape and Challenges
4.1 GST Impact
The 28% GST imposed from October 1, 2023, affected the entire gaming sector. Since the impact was only for six months in FY24, FY25 is expected to reflect its full implications. Real-money gaming startups like Zupee are particularly vulnerable due to their dependency on user volume and high engagement.
4.2 Legal Uncertainty and IPO Prospects
Despite the startup IPO wave in India, Zupee’s cofounder Malhi stated that regulatory uncertainties hinder IPO plans. The Supreme Court has put a temporary stay on GST demand notices worth ₹1.12 Lakh Cr sent to 49 companies. The matter is set for a hearing in May 2025. Until then, companies like Zupee are holding back IPO ambitions.
5. Competitive Landscape and Growth Opportunities
5.1 Zupee’s Market Position
Zupee competes with major players like Dream11, MPL, WinZO, and Gameskraft in India’s ₹25,000 Cr real-money gaming industry. It has carved a niche through simplicity, quick onboarding, and regional language support, helping it expand rapidly across India’s non-metro regions.
5.2 Future Roadmap
Zupee is exploring newer categories like fantasy gaming and card games (poker and rummy). The fantasy gaming market in India stands at $1.2 Bn–$2 Bn, while rummy and poker contribute another $1.8 Bn and $300 Mn, respectively. Entry into these verticals will help diversify Zupee’s offerings and enhance user stickiness.
6. Learning for Startups and Entrepreneurs
Zupee’s journey offers several takeaways for India’s startup ecosystem. First, product-led growth and regional penetration can lead to massive scale in consumer tech. Second, adapting quickly to regulatory shifts ensures survival and growth even in hostile environments. Third, profitability is not just a milestone but a shield in uncertain times—especially when the regulatory landscape is unpredictable.
Founders should also note that fundraising is not the end goal. Strategic capital deployment and cost discipline matter just as much. Zupee’s 11.7% expense growth against a 36.5% revenue spike shows how capital efficiency can be a game-changer.
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