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Real money gaming startup WinZO made a maiden profit of Rs 120 crore in the financial year 2022-23, a turnaround from a loss of Rs 120 crore incurred in the year-ago period.

In FY23, it registered Rs 674 crore in revenue from operations, reflecting a nearly 3X increase from Rs 234 crore it earned in the preceding fiscal year, the company said in a statement. Its total income for FY23 was Rs 687 crore.

WinZO’s expenses stood at Rs 566 crore in FY23, increasing 1.5X from Rs 363 crore in FY22.

Its profit margin for the fiscal year was 17%.

“WinZO’s success is attributed to its innovative multi-gaming platform approach and micro-transaction model, which fosters superior retention cohorts and distribution metrics and propels the company into profitability,” the company said in a statement.

In the six years since its launch in 2018, WinZO has amassed 175 million users.

For FY24, WinZO anticipates “significant variations” in its business after the hike in GST announced by the GST Council last year. This rise is poised to affect its financial performance, prompting the company to undertake strategic planning and proactive measures to sustain profitability, it said in a statement.

In October 2023, the government imposed a 28% GST on the total value of player deposits made on online platforms, subjecting significant financial strain on real-money gaming firms.