Free-to-play casual gaming market powered by advertising has been valued at Rs 3,600 crore in FY21, according to market research firm Statista. One such platform is Gamezop, which earns revenue from advertising which is further split halfway between the company and its distribution partners, Gaurav Agarwal, co-founder, told BrandWadon Online. The company claims to work with about 5,000 distribution partners. “We give companies a preferential revenue share if they add both of our products, Gamezop and Quizzop on their websites. This model could operate anywhere between 55-60%,” he added. He further claimed that the company ended FY22 with net revenue of Rs 44 crore, however, declined to comment on the net profit.
The company posted a 133% increase in net revenue to Rs 23.5 crore in FY21 from Rs 10.10 crore in FY20, as per the regulatory filings accessed by the business intelligence platform Tofler. The company turned positive with a net profit of Rs 3.86 crore in FY21 from a net loss of Rs 7.54 lakh in FY20.
The company claims to have a monthly active user base of nearly 45 million users, of this Gamezop accounts for two-thirds of total users. Furthermore, the company claims to have a user base from over 200 countries on a daily basis. “Southeast Asia is an important belt for us as we see a lot of distribution partnerships from there. We will have it on our radar for opening new offices,” he explained. Additionally, the company claims to have witnessed substantial traction from countries such as the United States, and Brazil, Argentina, and Mexico in Latin America.
In terms of distribution, Gamezop has tied up with various companies across sectors such as e-commerce, entertainment, business-to-business industrial products, information platforms, among others. For Agarwal, e-commerce, followed by entertainment and fast-moving consumer goods (FMCG) sectors consolidates the largest share of the company’s revenue.