New Delhi, April 22 -- Skill-based gaming platform Zupee, backed by investors such as Z47 and Orios Venture Partners, announced on Tuesday that it has posted its first-ever annual profit in the financial year ended March 2024, crossing the Rs 1,000-crore revenue milestone, driven by a significant surge in its registered user base.

The Gurugram-based company reported net revenue of Rs 1,123 crore in FY24, marking a 35% increase from the previous fiscal. It also recorded a net profit of Rs 146 crore, highlighting what it described as "strong business fundamentals and sustainable growth."

Zupee's latest financial filings were not yet available on the Ministry of Corporate Affairs website.

In FY23, Zupee had reported consolidated operating revenue of Rs 831 crore with a loss of Rs 36.5 crore, according to VCCEdge, the data research platform of VCCircle. This followed FY22 revenue of Rs 405 crore and a loss of Rs 130 crore, indicating the company more than doubled its revenue in FY23.

The FY24 turnaround is attributed to a 60% growth in its user base, as the platform expanded its presence across India and attracted a more diverse demographic.

While it sustained growth in FY24 despite the implementation of a 28% GST on online gaming in late 2023, the financial impact will be more visible in FY25, the company noted. "We continue to advocate for a balanced tax framework that differentiates skill-based games from games of chance," Zupee said in a statement.

Founded in 2018 by Dilsher Singh Malhi and Siddhant Saurabh, Zupee is a real-money online gaming platform offering skill-enhancing games, including trivia and quiz tournaments.

In 2022, the company raised $102 million (Rs 868.9 crore) in a Series B round from new and existing investors, including WestCap Group, Tomales Bay Capital, Nepean Capital, AJ Capital, Z47 (formerly Matrix Partners India), and Orios Venture Partners, valuing the company at $600 million.

In FY24, Zupee continued its growth trajectory, expanding its workforce by over 10% with hires across product development, data science, technology, and operations.

"Our focus on innovation, compliance, and responsible gaming has positioned Zupee as a resilient player in India's gaming market," said Malhi, founder and CEO of Zupee.

Published by HT Digital Content Services with permission from VC Circle.