PlayerzPot expects to post Rs 6-7 crore as loss in FY21
PlayerzPot saw a two-fold rise in new userbase during IPL and three fold rise in revenue vis-a-vis last IPL.
Smart marketing is all about cashing in on the right moment — however positive or negative may be the end result. Mumbai based fantasy sports company PlayerzPot is one of the fantasy sports companies which cashed in on last year’s Indian Premier League (IPL). Advertising for the first time, PlayerzPot invested Rs 4-5 crore on advertising online during the IPL (September-November). “While we were known in the core fantasy sports community, this year we invested in marketing to create brand awareness and increase our userbase. From social media campaigns, digital campaigns to buying airtime on OTT during select matches, we opted for a mix of all the digital assets. Apart from this, there were many affiliate campaigns and influencer-based campaigns which were an integral part of our marketing strategy. We also roped in Smriti Mandhana and Bhuvneshwar Kumar as brand ambassadors just before IPL,” Mitesh Gangar, co-founder, PlayerzPot told BrandWagon Online.
According to Gangar, PlayerzPot saw a two-fold rise in new userbase during IPL and three fold rise in revenue vis-a-vis last IPL. The company claims to have a registered user base of 25 lakh and of that nearly 30-35% translates into monthly active users (MAUs). While daily active user base (DAU) during IPL ranged between 40-45% of the total user base, it came down to 30-35% during any other international cricket matches. “It’s a general trend that T20 is much more preferred among the fantasy sports community. ODIs are second most favoured while Test series are the least preferred because of the five-day long wait for the results,” Gangar stated.
In an effort to regain business during the lockdown, the company launched a bunch of casual games on the platform and ventured into other sports. “We explored the realm of Baseball and Basketball as the two sports were not grounded. Baseball and Basketball accounted for 40-45% share of our revenue during (May-June-July). We also launched casual games in August–quizzes and knowledge-based cricket games, which accounted for 20-25% of our revenue before IPL,” Gangar said, adding that the company plans to launch a few more casual games in a couple of months.
As per the company, PlayerzPot’s platform fee, which is its only source of revenue, ranges between 8-15%, depending on the pool size. The company expects revenue to rise by 20-22% to Rs 13-14 crore this fiscal, with expenditure rising by 4-5% due to new launches. Interestingly, the company, which raised funds in August, claims to have more than doubled its total marketing spend to Rs 15-18 crore in FY21. “This year our focus is to build our brand and position ourselves as a well-known fantasy sports brand and for that we will be spending heavily on marketing. However, these spends are not short-term since we are entering into multi-year partnerships for marketing. Hence, while we expect to post a net loss of Rs 6-7 crore in FY21, I expect us to break-even within two years,” Gangar explained.