Adding to the industry-wide retrenchment in the crumbling Indian real money gaming sector, gaming and entertainment unicorn Games24x7 has started reducing its headcount - the second such exercise by the company in recent months.
As per sources close to Games 24×7, the layoffs would see terminations across departments in the startup. While other media reports claimed a significant portion of the workforce is being laid off, Inc42 could not verify the total number of employees impacted.
Games24x7 has declined to comment on the issue.
This is the third RMG startup to resort to layoffs, following Mobile Premier League (MPL / M-League) and Nazara-backed PokerBaazi. The layoffs across the RMG industry were more or less anticipated following the effective ban on “skill-based” games in the country earlier in August.
The swift action by the union government on banning RMG at the end of the monsoon session left a big question mark for the entire industry, which had seen a capital infusion of over $3 Bn and employed about four lakh people
However, in the case of Games24x7, this marks the second instance of layoffs within this year itself. Earlier in May, the startup had laid off close to 180 employees after seeing a big revenue impact from the GST clarification which came in late 2023.
Games24x7 operates primarily as an online skill gaming platform. Founded in 2006, it gained prominence through its flagship rummy platform, RummyCircle. In addition to RummyCircle, Games24x7 expanded into fantasy sports with My11Circle, offering cricket and other sports enthusiasts a platform to create fantasy teams and compete.
The startup grew rapidly, backed by investors like Tiger Global and Raine Group, and achieved unicorn status with a valuation of $2.5 Bn as of March 2022.
At its peak, Games24x7 claimed to have more than 500 Mn fantasy teams and gained plenty of limelight as an associate partner of the Indian Premier League (IPL) in 2024.
As per its last disclosed financial statement for the fiscal year FY23, its revenue increased 70% YoY to INR 1,980 Cr. However, net loss also grew 9% YoY to INR 250 Cr, which the startup attributed mainly to aggressive investments in My11Circle.
However, following the government action, Games24x7 suspended all real money contests on its platforms, moving to free-to-play formats only. Meanwhile, the startup’s competitor also began exploring other revenue sources post the enforcement of the new regulation.
For instance, Dream11 has decided to focus on scaling its online streaming platform FanCode and redeploying its resources, especially in the AI segment. It has also ventured into investment tech with the launch of Dream Money.
On the other hand, WinZO pivoted to the short video segment by rolling out its short video feature called ZO TV. Additionally, the platform will take its online gaming offering to the US market.