Policy · Consumer Internet & Media

ED raids WinZO, freezes assets, arrests founders

By Startup Enthusiast · 13 January 2026

What they do

ED raided WinZO in November 2025, froze assets worth INR 505 Cr, and arrested cofounders under PMLA

With 70% workforce gone and only INR 15 Cr usable funds, WinZO faces legal bills and possible overseas shutdown

PROGA ban from August 2025 pushed WinZO to pivot to Zo TV and US market, but progress is minimal

The Enforcement Directorate (ED) searched WinZO and Gamezkraft offices in November 2025 as part of a money laundering probe.
ED carried out searches at four locations in Delhi and Gurugram between November 18 and November 22, 2025.
ED froze assets worth about INR 505 Cr under Section 17(1A) of PMLA, covering bank balances, bonds, fixed deposits and mutual fund investments.
ED arrested WinZO cofounders Saumya Singh Rathore and Paavan Nanda in November 2025 under PMLA provisions.
A Bengaluru sessions court released Rathore on bail in December 2025 but refused bail to Nanda.
Rathore approached Karnataka High Court challenging ED's jurisdiction and seeking quashing of ECIR.
Karnataka High Court scheduled further hearing for January 14 and told ED not to escalate the matter until then.
Paytm filed a case against WinZO at NCLT over unpaid dues.

The Promotion and Regulation of Online Gaming Act (PROGA) effectively banned real-money gaming (RMG) from August 22, 2025.
ED alleged WinZO used algorithms or software-driven gameplay without telling users they were competing against automated systems.
ED alleged WinZO restricted or delayed withdrawals of user funds.
FIRs against WinZO alleged cheating, impersonation, misuse of PAN, wrongful blocking of user accounts, and misuse of KYC details.
Legal experts say other gaming startups are reassessing international expansion due to WinZO scrutiny.

WinZO operated real-money gaming services in India and overseas markets including Brazil, US and Germany.
WinZO launched short-video product Zo TV after the ban.
Zo TV has made no progress on content or operations.
WinZO experimented with digital gold offerings.
WinZO announced a strategic pivot to US market after PROGA ban.
WinZO started pushing into overseas markets after 28% GST implementation affected growth in India.
WinZO was already live in Brazil for seven to eight months as of July 2025.