Playsimple Games Limited IPO

A decrease in popularity of the company's top games could have a material adverse effect on its business, financial condition and results of operations.

The majority of the company's revenue from operations is ultimately derived from players in North America, therefore any adverse changes in the economic, legal, political, regulatory, public health, and other circumstances in North America could adversely impact its results of operations.

The company's top ad network customer accounted for 37.76%, 30.52% and 29.43%; its top five ad network customers accounted for 68.12%, 73.70% and 72.26%; and the company's top ten ad network customers accounted for 82.49%, 91.32% and 92.74% of its Advertisement income in 2025, 2024 and 2023, respectively. If the company is unable to maintain its relationships with such ad network customers, the company may be unable to maintain and increase its revenues.

As a mobile gaming company, the company is subject to laws and regulations in India and worldwide. Changes to such laws or regulations or interpretations thereof may adversely affect its business, financial condition and results of operations.

The company derived 84.83%, 78.83% and 77.75% of its Revenue from operations, from in-app ads in 2025, 2024 and 2023, respectively. The company's ability to maintain its relationship with ad network customers depends in part on the company's ability to attract advertisers to its games, which in turn, depends on the company's ability to leverage its data, analytics and insights to design games that sustain player engagement and retention. A decline in demand from the company's end-customer advertisers could result in a decline in sale of ad space to ad network customers, which would have an adverse effect on its business, financial condition and results of operations.

The company had Advertisement expenses of Rs.14,399.40 million, Rs.8,992.49 million and Rs.10,551.83 million for 2025, 2024 and 2023, respectively. If the does not manage its Advertisement expenses effectively or if these initiatives do not yield their anticipated results, the company's business, financial condition, profitability, results of operations and prospects may be adversely affected.

As a percentage of the company's Advertisement expenses in 2025, 2024 and 2023, its top ad network vendor accounted for 36.72%, 25.39% and 18.73%, respectively, the company's top five ad network vendors accounted for 91.75%, 85.88% and 76.73%, respectively, and its ten ad network vendors accounted for 98.34%, 97.14% and 92.85%, respectively. If the company is unable to maintain its relationships with such ad networks, the company may be unable to effectively acquire players for its games.

The company had 4.62 million, 3.17 million and 2.87 million average DAUs in 2025, 2024 and 2023, respectively. If the company is unable to retain current players or add new players, particularly those who make in-game purchases, maintain or increase player engagement and retention with its games, or develop or acquire new games that achieve broad popularity, the company's business, financial condition, results of operations and prospects may be adversely impacted.

The company operates in a competitive industry, and its market share may be adversely impacted if the company is unable to compete effectively in the markets in which the company operates.

Any inability to protect the company's IP or any third-party claims in relation to infringement of its existing intellectual property rights or in the future could materially adversely affect the company's business, reputation, financial condition, results of operations and cash flows.