WinZO is looking to tap into Brazil’s fast-growing mobile gaming market which saw 4.6 billion downloads of mobile games in 2022 and to allow Indian game developers to showcase their skills worldwide.
WinZO, one of India’s biggest online gaming companies, announced they’re expanding into Brazil! This announcement came at a time when Indian gaming companies are struggling with the GST hike, which has been a real downer for new startups. WinZO is investing $25 million into Brazil, so they can focus on getting their games out there and building their brand.
The company pointed out that the tax rates for gaming commissions in countries like the US, UK, Australia, Germany, etc. are between 6.75% and 21%, which is much lower than India’s new 28% GST rate on full face value. Brazil also charges indirect taxes, like 2-5%, as a municipal tax, on the commission made by the company.
“WinZO is committed to developing a ‘Made in Bharat’ consumer tech product that resonates with and caters to the interactive entertainment needs of young users worldwide. We had plans of going global but the new GST regime has accelerated the plans. The new GST regime will have an impact on monetization, both top and bottom line, across the industry,” said Paavan Nanda, Co-founder of WinZO.
The company is looking to tap into Brazil’s fast-growing mobile gaming market which saw 4.6 billion downloads of mobile games in 2022 and to allow Indian game developers to showcase their skills worldwide.
The company said that not only is Brazil a great place to play online, but it also has a great regulatory system that helps promote online gaming. “The regulatory landscape, the push that the Brazilian government is giving to the online gaming ecosystem is very favourable,” said Nanda.
The co-founder also said that the online gaming company has high expectations from the government regarding the upcoming six-month review of the new GST regime. “The government should look at the sector which is considered to be sunrise in India and see the impact on small and medium companies in the sector. People are losing jobs and there is no capital coming into the sector. Some of the smaller startups have shut shops. It is important to watch the industry and check what happened in the six months. We are hopeful that the six-month review will bring good news,” Nanda told CNBC TV-18.
WinZO is set to make a significant contribution to the Indian gaming market by representing India at the inaugural Brazil Game Show, the largest gaming event in Latin America. The company already has over 150 million users and has raised a total of $100 million from prominent gaming and entertainment investors.
Credit: CNBC TV18