Cards52, an upcoming real money gaming (RMG) platform, has raised a pre-seed round funding from a US-based angel investor. This funding comes amid challenging times for the RMG and online gaming industry. This clearly indicates a strong business strategy despite recent GST changes.
Notably, GST Council declared a 28% GST on full face value for online gaming, horse-racing and casino activities. Cards52, being a poker startup, will have to accurately implement its plans in order to shine in the booming industry. Reportedly, the poker industry is growing at a CAGR of 16.9% and is expected to reach a $346 valuation by 2030.
In July, GST Council’s 50th meeting considered applying a 28% GST on online gaming, horse-race, and casino activities. The decision laid much ambiguity among the gaming community. Thus, a 51st meeting was held on August 2, post which it was clarified that GST will be charged only on the initial deposits and not the subsequent ones.
All-India Gaming Federation (AIGF) urged the government to reconsider how GST is levied, however, the GST council’s decision wasn’t to their liking. Due to this, gaming startups will now have to undergo huge changes in order to not just survive, but thrive.
However, Ayron Tech Private Limited owned Cards52 managing to secure over a million USD in funding is quite remarkable. The startup have also previously managed to raise an undisclosed amount during its pre-seed funding round back in April.
Recently, Quizy ceased to operate owing to GST changes. Also, Mobile Premier League (MPL) and Rush laid off a significant chunk of their workforce. Thus, Cards52 securing funding makes one wonder about their strategic prowess.
Cards52 provides a variety of options from popular online games like poker, fantasy cricket, ludo, rummy, call break, opinion trading, etc.
We see challenges as opportunities for innovation and growth, says CEO Ramesh Rao Thotapalli
Sharing his excitement, Cards52 CEO, Ramesh Rao Thotapalli said, “While the current industry dynamics present their own set of challenges, we see them as opportunities for innovation and growth. Cards52 has always been committed to providing a unique and engaging gaming experience to our users. This funding will enable us to further enhance our platform, invest in cutting-edge technology, and expand our user base.”
Gaining an edge over others in the current market situation, Cards52 is also hiring staff while raising funds from international investors. Thotapalli believes that employees are the most valuable assets to any firm. With a talented roster, the company aims to reveal the untapped potential of the RMG sector.