WinZO Expands Beyond Real-Money Gaming in India

WinZO, a prominent social gaming and entertainment platform, is broadening its approach as it ventures into micro dramas and subscription-based services. This expansion aims to address the government’s comprehensive ban on real-money gaming (RMG) in India. The company is also enhancing its international footprint with its recent debut in the US, now its third overseas market following Brazil.

WinZO TV: New Content Initiative

As part of its content strategy, WinZO has rolled out WinZO TV, a new feature that offers short drama series to its extensive audience of 250 million users. This innovative format presents serialised videos lasting one to two minutes. Initial episodes are available for free, while subsequent episodes can be accessed for a nominal fee of Rs 2 each.

Competing in the Market

With this new initiative, WinZO is entering a competitive landscape that includes Flick TV, Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga, Reelies, and Chai Bisket’s Chai Shots, along with Eloelo.

Investment and Valuation

WinZO has successfully secured over $100 million from notable investors such as Kalaari Capital, Griffin Gaming Partners, Makers Fund, and Courtside Ventures. The company was recently valued at approximately $340 million. Despite facing considerable challenges in the RMG sector due to regulatory updates and increased GST, WinZO is actively exploring alternative revenue models, including subscriptions, in-app entertainment, and further international expansion.

US Market Entry and Future Plans

The company’s entry into the US market comes nearly two years after its expansion into Brazil, aiming to lessen its reliance on the Indian market amid the introduction of a 28% GST policy on RMG applications. According to co-founders Saumya Singh Rathore and Paavan Nanda, launching in the US will enable Indian developers to create culturally relevant games for a wider global audience.

Strong Financial Performance

For the fiscal year ending March 2024, WinZO announced a remarkable year-on-year increase of 70% in operating revenue, reaching Rs 1,055 crore. Additionally, its profit after tax (PAT) grew 2.5 times to Rs 315 crore. The company outperformed its competitors in revenue gains, with Nazara reporting 4%, Zupee at 34.9%, and MPL at 22% growth.

Industry Trends Amid Government Regulations

The government’s ban on real-money gaming is prompting numerous companies to seek out alternative revenue streams. For instance, Dream Sports, the parent company of Dream11, has branched into wealth technology with Dream Money, allowing users to invest in digital gold and fixed deposits.