The Enforcement Directorate (ED) has taken into custody WinZO founders Saumya Singh Rathore and Paavan Nanda in Bengaluru, marking a significant development in an ongoing money laundering investigation. The arrests occurred on Thursday after extensive questioning at the agency's zonal office, according to officials who spoke with PTI.
Who Are the WinZO Founders?
Saumya Singh Rathore serves as co-founder of WinZO, a social gaming application launched in 2018 that provides monetary rewards and prizes to its users. Before establishing WinZO, both Rathore and her co-accused Paavan Nanda worked together at Zo Rooms.
Rathore's professional background includes significant roles at Times Network as a partner in the English Entertainment Cluster and heading the Compensation and Benefits section at The Times of India. She previously worked as a business manager across various Times Group companies and had an international stint at KPMG London.
Her educational qualifications include studying Applied Clinical Psychology at Bangalore University in 2005, followed by a Masters in Organization and Consumer Psychology from the University of Manchester. Rathore gained recognition in the Kotak Private Banking Hurun Leading Wealthy Women List 2021 as one of the youngest entrants with an estimated wealth of INR 520 crore.
The Money Laundering Allegations
The Enforcement Directorate issued an official statement on Monday outlining serious charges against the gaming platform. The agency claims that ₹43 crore belonging to gamers remains held by the company without being refunded to players, despite India's ban on real-money gaming.
Earlier last week, the financial probe agency conducted raids at WinZO and Gamezkraft premises under the Prevention of Money Laundering Act (PMLA). The ED has accused WinZO of engaging in criminal activities and unscrupulous practices by allowing customers to play with algorithms without disclosing that they were interacting with software rather than human opponents in real-money games.
Investigators discovered that WinZO operated real-money games in international markets including Brazil, the United States, and Germany using the same platform hosted in India. The agency specifically noted that even after the Union government's ban on real-money gaming effective from August 22, 2025, the company continued to withhold the substantial customer funds.
As part of their action, the ED has frozen bonds, fixed deposits, and mutual funds valued at ₹505 crore possessed by WinZO Games under PMLA provisions. The agency further alleges that WinZO restricted customer withdrawals from their wallets and generated alleged illicit funds through bet amounts lost by real customers due to manipulated algorithm usage.
International Dimensions and Company Response
The investigation uncovered that WinZO managed its global operations through a single application hosted on India-based infrastructure. The ED charged that funds from the Indian entity were diverted to the United States and Singapore under the guise of overseas investments.
Specifically, the agency identified approximately USD 55 million (about ₹489.90 crore) parked in a WinZO bank account in the US, which they characterize as a shell company since all operational activities and bank account management were conducted from India.
In response to these serious allegations, a WinZO spokesperson addressed the charges, telling PTI that fairness and transparency are core to how WinZO designs and operates its platform. The company emphasized its focus on protecting users and ensuring a secure, trustworthy experience while maintaining full compliance with all applicable laws.
The case continues to develop as the Enforcement Directorate proceeds with its money laundering investigation against one of India's prominent gaming platforms and its founders.
