Nazara Technologies investment

Nazara Technologies Invests ₹982 Crore in PokerBaazi Parent, Expands Skill Gaming Market

Nazara Technologies, one of India’s leading gaming and sports media companies, announced a significant investment of ₹982 crore into Moonshine Technology, the parent company of the online poker platform PokerBaazi. This marks the largest investment made by Nazara Technologies to date and is expected to bolster its presence in the growing online skill-gaming sector.

Key Details of the Investment

1. Initial Acquisition: Nazara Technologies will acquire a 47.7% stake in Moonshine Technology for ₹831.5 crore. This transaction will include:
   • ₹592.26 crore paid in cash.
   • ₹239.25 crore through a share swap, representing a 3.17% stake in Nazara Technologies.
2. Additional Investment: An additional ₹150 crore will be invested in Moonshine Technology through compulsory convertible preference shares, bringing the total investment to ₹982 crore.

This strategic move is aimed at boosting Nazara’s position in India’s skill-based gaming sector, with PokerBaazi being a major player in the online poker space. The investment aligns with Nazara’s goal of becoming a dominant diversified gaming platform in India.

Nazara’s Vision and Industry Impact

Nazara Technologies’ founder and CEO, Nitish Mittersain, stated that this investment is a crucial step towards positioning Nazara as a leader in India’s rapidly expanding gaming sector. He praised PokerBaazi for setting new benchmarks in online poker gaming, user engagement, and innovation.

Mittersain has also expressed a long-term vision for the company to expand its real-money gaming segment. He expects a 10-fold growth in revenue over the next five years, positioning the company to lead both domestically and internationally in the gaming space.

Despite challenges in the regulatory environment and the imposition of the 28% Goods and Services Tax (GST) on real-money games, the online gaming industry in India has shown robust growth. The industry generated a revenue of $3.1 billion in FY23, growing by 19% from $2.6 billion in FY22. Projections suggest the sector could reach $7.5 billion by FY28.

Moonshine Technology: A Growing Force in Online Gaming

Founded in 2014 by Navkiran Singh, Moonshine Technology started as an online poker platform with PokerBaazi, which has since become its flagship product. PokerBaazi contributes over 85% of Moonshine’s revenue, with around 340,000 monthly active users as of May 2024. The company has expanded into other gaming areas, such as CardBaazi, fantasy sports through SportsBaazi, and spectator gaming.

For FY24, Moonshine Technology reported a turnover of ₹414.9 crore, up from ₹268 crore in FY23, with an EBITDA of ₹41.2 crore. This growth reflects the company’s increasing market presence and leadership in the Indian online poker space.

Navkiran Singh, CEO of Moonshine Technology, emphasized that the partnership with Nazara Technologies is crucial for advancing both companies’ goals of expanding within India and globally. Singh believes this deal will significantly contribute to the overall growth of India’s gaming ecosystem.

Conclusion

Nazara Technologies’ ₹982 crore investment in Moonshine Technology, the parent company of PokerBaazi, underscores the company’s commitment to expanding its footprint in the skill-based gaming sector. The investment represents a strategic move to tap into the growing demand for real-money games in India, despite challenges in the regulatory landscape. With the Indian gaming industry projected to grow significantly in the coming years, this deal positions Nazara Technologies as a key player in shaping the future of online gaming both in India and globally.

FAQs

1. Why is Nazara Technologies investing in Moonshine Technology? Nazara Technologies is investing in Moonshine Technology to strengthen its presence in the online skill-gaming sector and capitalize on the growing demand for real-money games in India.
2. What is the total value of the investment? The total investment is ₹982 crore, with ₹831.5 crore used to acquire a 47.7% stake and an additional ₹150 crore invested through preference shares.
3. What role does PokerBaazi play in Moonshine Technology’s business? PokerBaazi is Moonshine Technology’s flagship product, contributing more than 85% of the company’s FY24 revenue and serving as a leader in the Indian online poker market.
4. How is the Indian online gaming industry performing? The Indian online gaming industry generated $3.1 billion in FY23, growing by 19% from FY22. The industry is projected to reach $7.5 billion by FY28.
5. What is Nazara Technologies’ vision for the future? Nazara aims to achieve a 10-fold growth in revenue over the next five years, with a strong focus on expanding its real-money gaming segment and becoming a dominant player in India’s gaming ecosystem.

Nazara Technologies investment

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