Hours Before ED Arrests, WinZO Founders Told Staff To 'Stay Focused' As Raids Unfolded: Report
Addressed casually as “Hello Doston,” WinZO founders apologised for not sharing details earlier and said the company had been caught up in “something that came our way in an unexpected manner.”
A day before Enforcement Directorate officials took action against WinZO co-founders Saumya Singh Rathore and Paavan Nanda, employees received a message from the leadership acknowledging ongoing raids and advising the team to remain focused. The internal note was meant to reassure staff, but for many, it raised more questions than answers.
Multiple employees who spoke to Storyboard18 described the tone as warm and appreciative, yet vague about what the company was facing. The communication was followed by immediate operational changes, including a sudden shift to a work-from-home model, which insiders later linked to ongoing searches by authorities.
Internal Message Attempts Reassurance
Addressed casually as “Hello Doston,” the founders apologised for not sharing details earlier and said the company had been caught up in “something that came our way in an unexpected manner.” They acknowledged an ongoing “search and survey stage for many user complaints for the period before 22-Aug,” and added that more explanation would follow through a town hall.
The message praised employees for “holding the fort,” saying they had “seen some leaders truly emerge,” and asked the team to continue working remotely for the week, citing “unexpected guests,” a phrase later interpreted as a reference to ED personnel on site. The closing line read, “Let’s continue to build and keep at it. Lots of love, Saumya and Paavan.”
Employees reportedly said the tone suggested disruption, but not the possibility of arrests. One employee said, “We are still shocked and have no clue what is the way forward. We have been working from home for two days. Multiple employees have already quit. We’re trying to ascertain our future.”
Arrests, Seizures And Allegations
Within hours of sending the message, the situation escalated sharply. On Wednesday, the Enforcement Directorate arrested both founders in Bengaluru after a round of questioning. They were produced in court the same evening and sent to one-day custody. Their next appearance is scheduled for Thursday at 11:30 am.
According to the agency, assets worth ₹505 crore have been frozen, including mutual funds, bonds, and fixed deposits linked to WinZO. Investigators also allege that USD 55 million (₹490 crore) was routed to a US-based shell entity despite the company continuing operations from India.
Further allegations include holding ₹43 crore belonging to gamers after the government banned real-money gaming from August 22, 2025, restricting withdrawals, and allowing players to unknowingly compete against algorithms rather than human users. The ED also claims the company operated real-money gaming in multiple international markets through the same India-based platform.
A company spokesperson denied wrongdoing, stating: “Fairness and transparency are core to how WinZO designs and operates its platform. Our focus remains on protecting our users and ensuring a secure, trustworthy experience.”
Tense Atmosphere As Employees Brace For Uncertainty
WinZO, which offers over 100 games across 15 Indian languages and has attracted $100 million from global backers including Griffin Gaming Partners, Maker’s Fund, Courtside, and Kalaari Capital, now finds itself facing one of the largest regulatory challenges the real-money gaming sector has seen.
Inside the organisation, employees say fear and uncertainty have replaced routine communication. One staff member said the cheerful sign-off now feels unsettling: “Nothing in that message indicated arrests were imminent. Now everyone is worried about what happens next.”
With resignations rising, communication sparse, and the investigation widening, many employees now expect a long period of disruption — and few believe clarity is coming soon.
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