Penta Esports, aims to clock gross revenue of Rs 10-15 crore by the end of FY23, Anurag Khurana, founder and CEO, Penta Esports told BrandWagon Online. “This year, we expect much more participation from brands as well as streaming platforms, enabling us to break-even by the end of this fiscal,” he added. With FY22 being the first year of operations for Penta Esports, it claims to have clocked gross revenue worth Rs two crore, while its gross loss stood at about Rs 50 lakh. The company claims that of the total revenue earned, it has invested nearly Rs 1.5 crore in Penta Amateur League.
Furthermore, the company creates content and claims to have created 20 hours of content from the tournament alongside four hours of short form video (extracted from the tournament itself). Beyond this, the platform has four original IPs– Koffee with Kiran, 1v1, Esports in 5 and Penta Shorts. As per Khurana, the content accounts for nearly 10% at Rs 20 lakhs of the overall revenue. Going forward, it plans to launch 10 more IPs this year.
The company, which had rolled out its first season of Penta Amateur League, plans to launch two new leagues– Collegiate League and Professional League this fiscal. As per the company, while Penta Amateur League was for beginners, the two new leagues in the pipeline will cater to semi-professional and professional gamers. The six month-long league, which concluded in March, Penta Amateur League held six tournaments across PC, console and mobile games of popular titles such as World Cricket Championship 3, Gran Turismo Sport, Valorant, Battlegrounds Mobile India, Free Fire, Pokemon Unite, Super Smash Bros. Ultimate, Tekken 7, Clash Royale and Brawl Stars. “We started Penta Esports with a focus on engaging gamers at the grassroot level and enabling them to go to professional leagues. The only criteria we had for participation was that none of the players will be a professional level player. We want to give the spotlight to amateurs and semi professionals,” Khurana stated.
With the total prize pool of Rs 30 lakh (Rs five lakh per tournament), the tournament was broadcasted mostly on their own YouTube and Facebook channel. Moreover, the company partnered with Loco and Booyah for streaming. As an Esports platform, the company has three sources of revenue– brand sponsorships, advertisement revenue and media rights. “Our major source of revenue was brand sponsorship last fiscal as we could not leverage our media rights since we were streaming the tournaments on our channels. For us, the whole purpose of partnering with Loco and Booyah was to get the reach to spread the message about the tournament,” Khurana said.