Zupee Turns Profitable in FY24, Plans to Expand Into Fantasy and Card Games

Zupee, a real-money gaming platform, has made a big leap in FY24 by reporting a profit of ₹146 crore—its first full-year profit since its launch in 2018. In the previous year (FY23), the company had posted a loss of ₹36 crore.

This major turnaround came as Zupee’s revenue jumped 36.5%, reaching ₹1,123 crore compared to ₹823 crore in FY23.

Impact of New GST Rules on Zupee

In October 2023, a 28% GST on the full face value of bets was implemented across the gaming sector. Zupee’s FY24 numbers show only 6 months of this impact. The full impact will be seen in FY25.

Zupee said it adapted quickly and stayed strong due to its focus on product quality and operational flexibility, especially for its popular game Zupee Ludo.

Zupee Spending More on Users and Employees

 Total expenses rose by 11.7% to ₹1,019 crore in FY24 from ₹911.9 crore in FY23.

• ₹806 crore was spent on marketing and user incentives, making it the biggest cost.

• Employee benefits increased to ₹107 crore from ₹96 crore last year.

Kapil Sharma continues to be Zupee’s brand ambassador.

Zupee’s Future Plans

Zupee plans to expand its offerings by adding fantasy sports and card games like poker and rummy. While no launch date was announced, CEO Dilsher Malhi said these new games would help the platform grow further.

Malhi added that the fantasy gaming market in India is worth US$1.2–2 billion, and rummy is around US$1.5–1.8 billion, with poker at US$300 million.

No IPO Plans Yet Due to Regulatory Issues

Despite many startups heading for IPOs, Zupee is holding back. Malhi said there’s too much uncertainty around regulations, especially the 28% GST, which has led to ₹1.12 lakh crore in tax notices. The Supreme Court has temporarily stayed those notices, and a hearing is expected in May.

Conclusion

Zupee has turned profitable and is now aiming to grow its user base with new games. However, unclear rules around GST are slowing IPO dreams for now.

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