India’s MPL to sack 60% of native workers after paid gaming ban, supply says

By Aditya Kalra

NEW DELHI (Reuters) -Indian on-line gaming app Mobile Premier League (MPL) will sack about 60% of its native workforce as a part of a serious downsizing after the federal government banned paid video games, mentioned an organization supply with information of the plan, within the first such response to a brand new legislation.

Prime Minister Narendra Modi’s authorities this month banned on-line paid video games, citing monetary and dependancy dangers particularly amongst youth, resulting in a shutdown of many gaming apps providing paid fantasy cricket, rummy and poker video games.

The legislation shocked an Indian trade backed by enterprise capital companies comparable to Tiger Global and Peak XV Partners that was set to be value $3.6 billion by 2029. MPL and rival Dream11 turned fashionable in recent times by providing paid fantasy cricket video games that permit winners to obtain monetary prizes.

The trade says the video games depend on ability and subsequently aren’t playing, which was already extremely restricted in India.

As MPL focuses on free-to-play video games and bolsters its enterprise within the U.S. market, the corporate supply mentioned on Sunday it will let go of roughly 300 of its 500 India workers in divisions like advertising, finance, operations, engineering and authorized.

In an inner workers e-mail despatched on Sunday that was seen by Reuters, MPL CEO Sai Srinivas wrote “with a heavy heart we have decided that we will be downsizing our India Team significantly.” He didn’t specify the variety of job cuts within the e-mail.

“We are committed to providing those impacted with every possible support during this transition period … India accounted for 50% of M-League’s revenues and this change would mean that we would no longer be making any revenue from India in the near future,” he added.

MPL declined to remark to Reuters’ queries.

Backed by Peak XV Partners, previously generally known as Sequoia Capital India, MPL was valued at $2.3 billion in 2021, Pitchbook information reveals. It additionally has free-to-play choices in Europe and paid video games in United States and Brazil.

The firm supply mentioned that MPL’s India income final yr was roughly $100 million. MPL’s rival, Dream11, valued at $8 billion, has additionally discontinued its fantasy cricket providing. Many different apps providing paid poker and rummy card video games have additionally stopped.

In a primary, Indian gaming firm A23 challenged the federal government’s ban final week, however MPL and Dream11 have determined to not pursue authorized challenges.

(Reporting by Aditya Kalra; Editing by Jamie Freed)