MPL's India entity posts Rs 814.2 Cr in revenue, a nearly 35% jump amid GST row

The Indian entity of gaming firm Mobile Premier League (MPL) posted Rs 814.2 crore in revenue from operations in FY23—a 35.56% jump compared to Rs 600.6 crore in the previous year, as per the company's regulatory filings.

Online gaming services, software development, and support services helped the company boost its revenue. Revenue from online gaming services, at Rs 521.7 crore, accounted for the biggest revenue chunk for the company.

The entity's losses also shrunk to Rs 87.25 crore in FY23 compared to Rs 449.25 crore in the previous year. This comes at a time when online fantasy gaming firms are dealing with the implementation of the new Goods and Services (GST) rules, which mandate gaming companies to levy 28% tax.

Founded in 2018, MPL, headquartered in Singapore, develops internet-based games, and its primary business is operating games based in India. It received the coveted unicorn status in 2021 when it raised a Series E funding round at a $2.3 billion valuation.

MPL's India entity posted Rs 919.8 crore in expenses, a decrease of nearly 13.21% compared to the previous year of Rs 1059.8 crore. The company cut its expenses on advertising, marketing, and business promotion this year, spending only Rs 117.8 crore in FY23 compared to Rs 275 crore last year.

MPL also carried out a slew of layoffs in August—with the company letting go of as many as 350 employees. Co-founder Sai Srinivas cited the new GST regulations as a reason for the layoffs in an email to employees, adding that the move could increase the tax burden on the company by 350-400%.