This initiative allows eligible employees, approximately 30% of Winzo’s workforce, comprising team members with at least two years of tenure, to liquidate their vested Esops.
The buyback is part of Winzo’s strategy to attract and retain global tech-product talent, especially as the gaming industry faces challenges posed by 400% increase in GST cost and ongoing pressure from illegal offshore betting and gambling companies.
“At Winzo, we believe our talent is our greatest asset, and this Esop buyback programme reflects our commitment to celebrating innovation,” Saumya Singh Rathore and Paavan Nanda, founders of Winzo, said in a statement. “Despite the evolving challenges in the gaming industry, particularly recent taxation changes, our focus remains on supporting our team, and creating growth opportunities and innovating to work towards leadership in the globally $300 billion market, that today India claims only 1% of.”
In the last 12 months, the company has filed more than 25 technology patents across the world for its super computing technology, real-time communication innovation and AI applications in content creation and recognises that high-skilled and high-productivity talent is the most critical asset for the consumer tech industry that gaming forms a gateway to.
During the post-pandemic downturn, the online gaming industry became a refuge for professionals affected by layoffs in the wider tech industry, Winzo said in the statement. However, the sharp increase in GST has led to a significant drop in FDI, hindering the industry’s ability to attract and retain talent. Despite these challenges, Winzo has attracted globally competitive senior tech professionals, providing opportunities to develop cutting-edge technology in India and export it to international markets like Brazil.
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Winzo has grown its user base to 200 million within six years, capturing about 35% of India’s online gaming market. Previously, Winzo conducted three rounds of Esop liquidation in 2021 and 2023.