Who is Paavan Nanda? Enforcement Directorate arrests WinZO co-founder days after raids

The Enforcement Directorate on Wednesday arrested WinZO Co-founders Paavan Nanda and Saumya Singh Rathore on money laundering charges, officials said Thursday.

The two were presented before a local court in Bengaluru the same night and placed in one-day custody by the court, according to PTI. Officials said they are expected to appear again for a detailed hearing.

On Monday, the ED stated that the company had “held” ₹43 crore belonging to gamers, funds that should have ideally been refunded to players following India’s ban on real-money gaming.

Who is Paavan Nanda?

Paavan Nanda, 38, is an Indian entrepreneur and co‑founder of WinZO, a major real‑money and social gaming platform in India. Before founding WinZO in 2018, he helped build Zostel, a chain of backpacker hostels, and its budget‑hotel aggregator brother venture, ZO Rooms.

Educationally, Paavan Nanda holds a Bachelor’s in Engineering from Netaji Subhas Institute of Technology (NSIT), New Delhi, and an MBA from the Indian Institute of Management, Calcutta (IIM‑C) in 2014.

The combined net worth of Paavan Nanda and Saumya Singh Rathore reportedly stands at ₹962 crore.

WinZO released its audited financial results for the fiscal year ending March 31, 2024, reporting record revenue and profitability despite navigating a challenging regulatory environment. It is important to note that FY24 reflects only six months of the impact from the 400% increase in GST on online gaming, effective October 1, 2023, with the full-year effect expected in FY25, the statement said.

Key financial highlights for FY24 compared to FY23 include revenue from operations rising to ₹1,055 crore, up 70% from ₹619 crore, and adjusted profit after tax reaching ₹315 crore, a 151% increase from ₹125 crore.

Last week, the ED raided the premises of WinZO and Gamezkraft, another online gaming company, along with their promoters, under the provisions of the Prevention of Money Laundering Act (PMLA). It had accused WinZO of “engaging in criminal activities and unscrupulous practices as customers were made to play with algorithms without being made aware of the fact that they are playing with the software and not with humans in real-money games”.

The ED further said that WinZO was running real-money games (RMGs) in countries such as Brazil, the US, and Germany, from India (on the same platform used by the Indian entity).

It alleged, "Even after the ban of RMGs by the Union government (w.e.f. 22/08/2025), an amount of ₹43 crore is still held by the company without refunding to the gamers/customers.”

Bonds, fixed deposits, and mutual funds valued at ₹505 crore "possessed" by WinZO Games were frozen under the PMLA.

Responding to the allegations, a WinZO spokesperson said, “Fairness and transparency are core to how WinZO designs and operates its platform.” They added, "Our focus remains on protecting our users and ensuring a secure, trustworthy experience," noting that it continues to remain fully compliant with all applicable laws.