Online gaming platform Dangal Games has claimed to have ended FY 2022 with net revenue of Rs. 20 crore. The founder and CEO Varun Mahna said that the company is still at loss despite unit economics being profitable.

The CEO also said that it will take them at least three years to start earning profit. He also said that the company is aiming for net revenue of Rs. 70 crore for the current financial year.

“We are on a path to profitability and should be able to turn profitable in the next three years. We aim to clock a net revenue of Rs 70 crore in FY23,” Mahna said.

Dangal games launched Poker as its flagship game, but it has now included several other games including Fantasy, Rummy, and Casual, among others.  “In one year, we’ve been able to diversify our revenue streams. Poker had once accounted for 100% of the revenue. Currently, it accounts for 60% of the revenue while the remaining 35% comes from other genres of games,” Mahna added. The company shared that they currently have a total user base of 2.2 million.

According to the firm, their marketing is divided into two parts – branding and customer acquisition. Mahna said that his company’s spending on branding is very limited and acquisition and retention are the most important components.

“Acquisition and retention are the most important levers for us as an organization. We are focused on continuously driving these two levers to drive growth in the next few years,” he added.

As per a regulatory filing obtained by business intelligence platform ‘Tofler’, XETA Networks Pvt Ltd, which is the parent company of Dangal Games reported a 39.6% decline in revenue from sales or supply of services to Rs 11.7 crore in FY21 from Rs 19.4 crore, in the previous year. The net loss increased by four times from Rs 21.57 in FY20 to Rs 82.5 lakh in FY21.