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Baazi Games: A Rising Star in the Online Gaming Industry

Baazi Games, a company that runs skill-based real money gaming platforms, has achieved remarkable growth in the last fiscal year. The company reported a revenue of Rs 232 crore and a profit of Rs 17.46 crore in FY23, showing a significant increase from the previous year. Baazi Games has emerged as one of the leading players in the online gaming industry, competing with the likes of Dream11, Gameskraft, A23, and Gameberry Labs.

How Baazi Games Scaled Up Its Business

Baazi Games was established in 2014 with the launch of PokerBaazi, an online poker platform. Since then, the company has expanded its portfolio to include other skill gaming platforms such as SportsBaazi, CardBaazi, CasinoKart, PB School, Baazi Poker, and Tour. SportsBaazi, formerly known as BalleBaazi, allows users to play live games while watching sports. CardBaazi offers a variety of card games such as rummy, teen patti, and blackjack. CasinoKart is an online casino platform that features live dealers and games. PB School is an online learning platform that teaches users how to play poker. Baazi Poker is a social poker app that connects users with their friends and celebrities. Tour is a travel platform that organizes trips and events for poker enthusiasts.

The company has leveraged its diverse offerings and loyal user base to achieve a five-fold increase in its scale between FY21 and FY23. According to the company’s consolidated financial statements, Baazi Games made 99% of its revenue through gaming, while the remaining part came from the sale of traded goods and services. The company has also invested in technology and innovation to enhance its user experience and retention.

Baazi Games: A Rising Star in the Online Gaming Industry

How Baazi Games Spent Its Money

Like most of the players in the online gaming industry, Baazi Games spent a large chunk of its money on advertising and marketing. The company’s advertising expenses jumped 3.4X to Rs 118 crore in FY23, up from Rs 34.41 crore in FY22. The company also incurred high costs on outsourcing and subcontracting, which amounted to Rs 46.68 crore in FY23. The company also spent a significant amount on the payment gateway, website, server charges, and more.

The company’s total expenditure surged 2.7X to Rs 210 crore in FY23, up from Rs 78 crore in FY22. The company’s employee benefits expenses also doubled to Rs 20.88 crore in FY23, up from Rs 10.16 crore in FY22. The company has a team of over 200 employees across various functions such as technology, marketing, operations, and customer support.

How Baazi Games Earned Its Profit

Despite the rising expenses, Baazi Games managed to grow its bottom line by a remarkable margin. The company’s profit grew 3.8X to Rs 17.46 crore in FY23, up from Rs 4.53 crore in FY22. The company’s EBITDA margin and ROCE also improved to 10.36% and 67.45%, respectively, in FY23. This indicates that the company has been able to generate a high return on its capital and assets.

On a unit level, Baazi Games spent Re 0.91 to earn a rupee of operating revenue in FY23. This shows that the company has been able to achieve a positive unit economics and a healthy gross margin. However, the company’s operating cash flows declined 68% to Rs 15.28 crore in FY23, which could be a cause of concern for its liquidity and solvency.

What Lies Ahead for Baazi Games

Baazi Games has shown a strong performance in the online gaming industry, which is expected to grow at a CAGR of 40% to reach $2.8 billion by 2025, according to a report by KPMG and Google. The company has also raised $10 million in a Series A round led by Matrix Partners India in 2021, which it plans to use for product development, user acquisition, and expansion.

The company faces stiff competition from other players in the space, such as Dream11, which is valued at over $5 billion and has over 100 million users. The company also has to deal with the regulatory uncertainties and challenges that plague the online gaming industry in India. The company has to comply with the laws and regulations of different states, some of which have banned or restricted online gaming activities.

The company has to also ensure that it maintains its quality and security standards, as well as its ethical and social responsibility. The company has to ensure that it does not promote gambling or addiction among its users, and that it protects the privacy and data of its users. The company has to also deal with the risks of fraud, hacking, and cyberattacks that could hamper its reputation and operations.

Baazi Games has a vision to become the most trusted and preferred online gaming platform in India. The company has a mission to provide a safe, fair, and fun gaming experience to its users. The company has a strong team, a loyal user base, and a diverse portfolio of products. The company has also shown a remarkable growth in its revenue and profit. The company has to overcome the challenges and seize the opportunities that lie ahead in the online gaming industry.


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