Gameskraft reports Rs 1,062 Cr profit after tax in FY23

Gameskraft has been facing regulatory fire for some time over allegations of GST tax evasion amounting to Rs 21,000 crore, even as the company discontinued its fantasy platform Gamezy. Despite the odds, the six-year-old firm managed to grow its revenue with a steady increase in profits during the fiscal year ending March 2023.

The Bengaluru-based gaming company’s revenue from operations grew 24.8% to Rs 2,662 crore in FY23 from Rs 2,133 crore in FY22, its consolidated financial statements sourced from the Registrar of Companies show.

Financials FY23

FY22 FY23










Amount in ₹ Cr

Gameskraft operates a slew of apps including Rummy Culture, Playship, Pocket 52, RummyPrime, Ludo Culture, and Rummy Time. Income from subscriptions as well as platform cum commission fees from the user for entering the contests was the primary source of revenue in FY23.

The company also made Rs 69.6 crore largely from the unrealized gain on redemption of mutual funds (non-operating) which took its total income to Rs 2,732 crore during the last fiscal year.

Similar to the majority of gaming companies, advertising cum business promotion was the largest cost center, making up 47% of the overall cost. This expenditure grew by 34.7% to Rs 617 crore in FY23. Its employee benefit cost also jumped 80% to Rs 375 crore in FY23 which also includes Rs 136 crore as ESOP cost (a non-cash component).

Expenses Breakdown

Total ₹ 893 Cr
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Total ₹ 1301 Cr
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  • Employee benefit expense
  • Marketing and business promotion
  • Gateway commission charges
  • Legal and professional fees
  • Domain and web hosting services
  • Others

Gameskraft’s gateway commission, legal cum professional, domain, web hosting and other overheads pushed its total expenditure by 45.7% to Rs 1,301 crore in FY23 from Rs 893 crore in FY22.

Check TheKredible to see the detailed expense breakup.

The stable growth and controlled expenditure, resulted in a 14.2% increase in profits to Rs 1,062 crore in FY23 as compared to Rs 930 crore in FY22. Its ROCE and EBITDA margin stood at 47% and 53% respectively. On a unit level, Gameskraft spent Rs 0.49 to earn a rupee in FY23.


FY22 FY23
EBITDA Margin 59% 53%
Expense/₹ of Op Revenue ₹0.42 ₹0.49
ROCE 70% 47%

The so-called skill-based gaming firms are bearing the brunt of the 28% GST tax regime. Quite a few firms have been forced to take drastic steps, including layoffs and shutdowns

Mobile Premier League (MPL) was the first to announce the impact as the Peak XV Partners funded company let go of 350 employees. The company attributed the massive rise in tax burden due to GST to the layoffs.

Soon after MPL, online poker gaming platform Spartan Poker reportedly fired 125 employees. Kavin Bharati Mittal-led Hike Rush Gaming Universe also gave pink slips to 55 employees.

Gameskraft, however, has managed to keep the revenue growing but it appears to be walking on thin ice for now. 

The tax evasion charges are also quite serious and may have far greater implications if the apex court doesn’t rule in its favor. We’d likely know about the fate of the company and other real-money gaming firms later this month when the Supreme Court takes up the matter.

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