Mpl layoff: The government has banned the real money games. Its impact is now going to be seen on the job of employees. The gaming platform Mobile Premier League (MPL) is scheduled to trim of its 60-80% employee in India. The company’s co-founder Sai Srinivas has given this information to the employee in an internal memo. This trimming can hit up to 480 employees. It currently has around 500-600 employees. The talkers of the retrench will run on the company’s policy, marketing, finance, operations, engineering and legal teams. Moneycontrol has received this information from sources.
Earlier in August 2023, the company was largely trimmed when its 350 employees were shown the way out on the recommendations of the GST Council. The GST Council had recommended a skill game at that time to impose 28% tax on the real-mani games of every trap. This system came into force from October 2023.
What is the plan of MPL now?
The company plans not to challenge the government’s ban on real-mani games. At the same time, the company has also advised the Industry Body All India Gaming Federation (Aigf) not to make a legal challenge to the government’s decision. According to information from sources to Moneycontrol, the company has advised the Federation to focus on free-to-play games. The MPL is a member of the Federation.
Srinivas told the employee that some companies are challenging the government’s decision, but the MPL believes that any relief from the courts, even if it is received, will be found only after a long process. At the same time, he also said that even if any such relief is available, the business will remain in India, if there is no guarantee, then it would be best to accept it and move forward. Let us know that apart from MPL, many companies including Dream 11, Dream 11, Dream Sports, Gamescraft, Zupi and Pokarbaji’s parent company Moonshine Technology have accepted the government’s decision, on the other hand, online Rumi platform A23 Rami’s company Head Digital Works has filed a petition in Karnataka High Court. The next hearing of the case is to be held on 8 September.
How is MPL business health?
MPP was started by Srinivas and Shubh Malhotra in the year 2018. The company claims that it has more than 9 million registered users in Asia, Europe and North America. After raising $ 15 crore in September 2021, the value of the MPL was estimated at around $ $ 230 million and also entered the Unicorn Club. Peak XV (first Sikoia India) and RTP Global have invested money. It is the mistress of European Card and Board Game Studio Gameduell. Also, in the year 2022, it started Mobile Gaming Studio Mayhem Studios, which in the year 2023 raised about $ $ 2 million from investors like Peak XV Partners, Steidview Capital, Trucol, and Hashed Emergent and also got fanding from gaming and interactive media-focused venture fund Lumiki in July 2024.
Talking about MPL’s financial health, its revenue in FY 2024 jumped 22% to $ 13 crore on an annual basis. It also achieved break even with an operating profit of $ 2 lakh. Apart from India, the company also has a presence in North America, Africa and Europe. In FY 2024, about 31% of its revenue came from foreign markets.