MPL India reports strong financial performance in FY23, reduces losses

MPL India financial performance: MPL India, a gaming platform backed by Peak XV Partners, showcased robust financial results for the fiscal year 2022-23 (FY23). The company reported a notable 36 per cent surge in operating revenue, reaching Rs 814 crores, up from Rs 601 crores in the previous year.

Significantly, MPL India substantially curtailed its total expenditure by 13 per cent, amounting to Rs 919.8 crores. This cost-saving was driven by a 42 per cent reduction in advertising expenses, which decreased to Rs 305 crores.

Earlier this year, MPL made headlines by downsizing its workforce, letting go of 350 employees in response to the GST Council's decision to impose a 28 per cent GST on the full face value of online gaming companies.

In a remarkable financial turnaround, MPL India managed to slash its net loss by over 80 per cent in FY23, reporting a loss of Rs 87.2 crores compared to the previous fiscal year's Rs 449.4 crores.

Background

MPL, founded in 2018 by Sai Srinivas Kiran G and Shubh Malhotra, offers a diverse range of games, from skill-based fantasy sports to chess and casual games. The Bengaluru-based startup achieved unicorn status in September 2021, raising $150 million from investors like Legatum Capital, Accrete Capital, and Gaingels LLC, valuing the company at $2.3 billion.

It's worth noting that these financial figures pertain solely to MPL's India operations and do not include data from its international ventures.

MPL India's revenue experienced substantial growth, surging 36 per cent to Rs 814 crores in FY23, primarily attributed to platform fees charged to users for participating in fantasy gaming tournaments. Including other income sources, total income rose to Rs 832.6 crores, up 36.4 per cent from Rs 610.1 crores in the previous fiscal year.