Head Digital Works Completes $3 Million ESOP Buyback

On November 7 Head Digital Works revealed that it has maintained a highly lucrative ESOP buyback scheme focusing on its employees for the very first time in its history owing to the skill-gaming platform head digital works. 

Within the troubling times for the country’s skill-gaming industry infested with 28 Goods and Services Tax (GST) among other things, 97% of eligible Amazon ESOP participants preferred to redeem a few of their vested shares. As stated by Head Digital Works however, nearly 500 employees comprising over 50 percent of the workforce took part in the buyback.

"Despite the current challenges in the industry, we have been mindful of our operations and are focused on ensuring stability and growth. With this ESOP buyback, we want to thank our employees for their dedication and hard work" Head Digital works founder Deepak Gullapalli said in a statement.

"This is the first in our 18-year history, and with more to follow, it demonstrates our commitment to long-term wealth creation for our employees."

Head Digital Works, a company that is largely owned by Clairvest, a private equity firm based in Canada, runs A23 Rummy, A23 Poker, Cricket.com, among other platforms. The firm claims to have a user base of 70 million users who are registered to its various platforms.

In the month of October, WinZO, a skill-gaming platform, completed its Fourth ESOP liquidity round and made the opportunity available to about forty percent of its 200 workforce. As per Moneycontrol, 32 percent of the authorized members chose the options of liquidation of the shares.

In-app purchases and real money transactions dominate the Indian gaming market in terms of earnings, primarily MMORPGs with a cash component. The vertical grossed $3.1 billion in FY23, which was a 19 percent increase compared to the $2.6 billion posted in FY22. It will continue to increase, possibly swelling to $7.5 billion by FY28.