WinZO Concludes 4th ESOP Buyback

The ESOP buyback is a strategic part of WinZO’s efforts to attract and retain top technology and product talent, especially as the gaming industry faces challenges posed by 400% increase in GST cost, and ongoing pressure from illegal offshore betting & gambling companies

New Delhi, October 8th, 2024: WinZO, India’s largest gaming and interactive entertainment platform, announces the completion of its fourth round of Employee Stock Options Plan (ESOP) liquidation. This initiative allows eligible employees, approximately 30 percent of WinZO’s workforce, comprising team members with at least two years of tenure, to liquidate their vested ESOPs. In the last 12 months, the company has filed more than 25 technology patents across the world for its super computing technology, real-time communication innovation, and AI applications in content creation. The buyback is part of WinZO’s strategy to attract and retain global tech-product talent, particularly as a pivot to balance against the dampening of 400% increase in Goods and Services Tax (GST), which places it alongside “sin” sectors like casinos and horse racing. WinZO recognizes that high-skilled and high-productivity talent is the single most critical asset for the consumer tech industry that gaming forms a critical gateway to. If the sector loses its top technology talent, it will be difficult for the India consumer-tech to maintain the innovation and growth momentum.

During the post-pandemic downturn, the online gaming industry became a refuge for professionals affected by layoffs in the wider tech industry, including global layoffs in big tech companies. However, the sharp increase in GST has led to a significant drop in foreign direct investment (FDI), hindering the industry’s ability to attract and retain talent. Despite these challenges, WinZO has successfully attracted globally competitive senior tech professionals, providing opportunities to develop cutting-edge technology in India and export it to international markets like Brazil. According to the India Gaming Market Report 2024, the pay-to-play sector attracted 90% of the FDI, playing a critical role in job creation and attracting highly qualified talent from premier institutions such as IITs and IIMs.

India’s gaming sector faces a significant skill gap due to its complex talent requirements. WinZO has developed a multi-gaming platform with a unique micro-transaction-led model, offering over 100 casual games developed by third-party creators, leading the “Create in India for the World” vision of Honorable Prime Minister. To build the platform, WinZO has over the years attracted top talent proficient in technology to tackle challenges such as high-speed computation, low latency, and cybersecurity, especially for low-end devices with limited RAM and poor connectivity. Their expertise also encompasses storytelling, 3D modeling, animation, and audio engineering, highlighting the interdisciplinary nature of the gaming industry. While the industry has generated thousands of jobs, the limited supply of skilled professionals imposes an additional burden on Indian online gaming companies, necessitating workforce training in essential skills. Addressing these gaps is crucial for developing export-ready products at scale.

“At WinZO, we believe our talent is our greatest asset, and this ESOP buyback program reflects our commitment to celebrating innovation,” said Saumya Singh Rathore & Paavan Nanda, Founders of WinZO. “Despite the evolving challenges in the gaming industry, particularly recent taxation changes, our focus remains on supporting our team, and creating growth opportunities and innovating to work towards leadership in the globally $300 billion market, that today India claims only 1% of. We reinforce India’s talent with their belief in the long-term potential of the gaming sector. Together, we are building a global consumer tech company proudly made in India for the world.”

WinZO has grown its user base to 200 million within six years, capturing about 35% of India’s online gaming market. The company has demonstrated resilience in navigating industry challenges while consistently investing in the people and technologies that drive its growth.

In concluding the fourth consecutive annual ESOP buyback, WinZO has gone beyond the financial mandate to reaffirm and demonstrate its unflinching commitment to nurturing talent, fostering innovation, and driving growth in the gaming industry. The sector needs to go beyond the traditional ways of attracting and retaining talent since building a high productivity talent pipeline for a sunrise sector is a multi-year and resource-intensive activity. When the sector will come out from the shadow cast by GST hike and conflation with “sin sectors”, this initiative would have played a critical role in weathering the storm of churn in the talent pool. This initiative recognizes the exceptional efforts made by the WinZO team in creating world-class products for both Indian and global markets. This move furthers WinZO’s vision of becoming the first truly global consumer tech company made in India and widening the talent pool for the Indian consumer tech and startup ecosystem.

The Indian gaming sector, currently valued at USD 3.1 billion, is projected to grow at a 14% Compound Annual Growth Rate, reaching USD 6 billion by 2028 (India Gaming Market Report 2024). If India increases its market share to 20%, in line with its global user base and app download share, by 2034, the sector could represent a USD 60 billion opportunity. By targeting USD 60 billion opportunity, the gaming industry can also increase the employment generation by 20X, adding over two million jobs to the Indian economy from this sector alone.

Previously, WinZO conducted three rounds of ESOP liquidation in 2021 and 2023. In addition to competitive global compensation packages, WinZO offers a lucrative Scholarship Policy enabling team members to pursue fully funded higher education at prestigious universities worldwide. With a lean team of 200 members, WinZO has raised $100 million in cumulative funding from leading investors, including Griffin Gaming Partners, Maker’s Fund, Courtside Ventures, and Kalaari Capital.