WinZO forays into micro dramas, enters US after RMG ban

WinZO, the social gaming and entertainment platform, is expanding its playbook beyond real-money gaming (RMG) with a foray into micro dramas and subscription-led services, as it looks to navigate the government’s blanket ban on RMG in India.

The company has also widened its global presence with a US debut, marking its third international market after Brazil.

As part of its content push, WinZO has introduced WinZO TV, a new feature that serves up bite-sized drama shows for its 250 million users. The format delivers one to two-minute serialised videos, with initial episodes free to watch and later ones priced at Rs 2 each.

With this, WinZo will face competition from Flick TV, Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga, Reelies, Chai Bisket’s Chai Shots and Eloelo.

WinZO has raised over $100 million from marquee investors including Kalaari Capital, Griffin Gaming Partners, Makers Fund, and Courtside Ventures, and was last valued at around $340 million. While its RMG business faced significant headwinds due to regulatory changes and higher GST, the company has been seeking alternative monetisation avenues through subscriptions, in-app entertainment formats, and international expansion.

WinZO’s expansion into the US comes nearly two years after its Brazil foray, aimed at reducing dependence on India following the introduction of a 28% GST regime on RMG apps. 

According to co-founders Saumya Singh Rathore and Paavan Nanda, the US launch will also allow Indian developers building culturally relevant games to reach a new global audience.

For the fiscal year ending March 2024, WinZO reported a 70% year-on-year surge in operating revenue to Rs 1,055 crore, while its profit after tax (PAT) rose 2.5X to Rs 315 crore. The company outpaced its peers in revenue growth, compared to Nazara’s 4%, Zupee’s 34.9%, and MPL’s 22%. 

The government’s RMG ban is prompting many firms to explore alternative avenues. For context, Dream Sports, which owns Dream11, has ventured into wealth tech with Dream Money, letting users invest in digital gold and fixed deposits.