In a significant move to strengthen its foothold in the online gaming sector, Nazara Technologies, a leading player in the Indian gaming industry, has entered into a definitive agreement to acquire a 47.7% stake in Moonshine Technology, the parent company of the popular online poker platform Pokerbaazi. This acquisition marks Nazara’s biggest bet to date, with a total investment of INR 982 Cr, which will bring Moonshine under Nazara’s fold as an associate company.
Overview of the Acquisition Deal
As per the exchange filing, Nazara will acquire a 47.7% stake in Moonshine Technology through a secondary transaction, amounting to INR 831.5 Cr. The deal will see Nazara acquiring 18.96 lakh equity shares of Moonshine Technology, valued at INR 10 each, from its existing shareholders. The shareholders include Pokerbaazi founder Navkiran Singh, co-founders Puneet Singh, Avneet Rana, Varun Ganjoo, Anirudh Chaudhry, Gurjeet Kaur, private equity firm Bellerive Capital, and skill- and chance-based gaming company Influencers Interactive.
Of the total investment, Nazara will pay INR 592.26 Cr in cash, while the remaining INR 239.25 Cr will be paid through a share swap, wherein Nazara will issue fully paid-up equity shares. In addition, Nazara’s board has approved an additional INR 150 Cr equity infusion into Moonshine Technology through the issuance of compulsorily convertible preference shares. This brings the total deal value to INR 982 Cr, making it Nazara’s biggest bet in any company so far.
However, the completion of this transaction is subject to approvals from Nazara’s shareholders and regulatory authorities, as required.
Significance of the Acquisition for Nazara Technologies
This acquisition is a strategic move by Nazara to solidify its position in India’s booming online gaming market. By acquiring a significant stake in Moonshine Technology, Nazara will bring the Pokerbaazi platform and other gaming assets of Moonshine under its umbrella. Pokerbaazi, a well-established brand in the Indian online poker segment, will allow Nazara to expand its presence in the skill-based gaming industry.
Moonshine Technology, which operates Pokerbaazi through its 100% subsidiary Baazi Networks, also runs a sports and casual gaming vertical under the brand SportsBaazi. SportsBaazi offers online sports, casual games, and fantasy gaming, further diversifying Nazara’s gaming portfolio.
In FY24, Pokerbaazi contributed approximately 87% of the total net revenue of Moonshine Technology’s group, while SportsBaazi accounted for around 12%. This significant contribution underscores Pokerbaazi’s prominence and potential in the Indian online gaming landscape, making it a valuable asset for Nazara’s future growth strategy.
Strengthening Nazara’s Presence in the Online Gaming Sector
This acquisition is expected to provide Nazara with an edge in the competitive online gaming space by adding Pokerbaazi’s strong user base and operational capabilities to its portfolio. As part of its broader strategy, Nazara has been actively investing in skill-based gaming companies and has now made its largest financial commitment to Moonshine Technology.
Nazara’s leadership believes that the acquisition will allow the company to tap into the growing market for online poker and fantasy sports, which are witnessing increased participation in India. The integration of Pokerbaazi into Nazara’s ecosystem will also offer opportunities for cross-platform synergy, enabling Nazara to provide a more comprehensive gaming experience to its users.
Moonshine Technology: The Parent Company of Pokerbaazi
Moonshine Technology is not only the parent company of Pokerbaazi but also operates several other gaming entities. The company has seven subsidiaries, including Ross Technologies Private Limited, Baazi Networks Private Limited, Baazi Games Private Limited, and SBN Gaming Network Private Limited. These subsidiaries offer a range of gaming services, including skill-based games, casual gaming, and online poker.
Moonshine Technology’s flagship platform, Pokerbaazi, is a leading name in the online poker space in India, offering users a secure and competitive platform to play poker games. With the popularity of poker growing in India, Pokerbaazi has emerged as a dominant player in the market, catering to a large and engaged user base.
The company also runs SportsBaazi, a step-down subsidiary focused on sports and casual gaming. SportsBaazi offers users a wide range of sports and fantasy games, further expanding Moonshine’s gaming portfolio.
Conclusion: Nazara’s Biggest Bet in the Online Gaming Space
The acquisition of Moonshine Technology for INR 982 Cr represents Nazara’s biggest bet in the gaming industry to date. By acquiring a significant stake in the parent company of Pokerbaazi, Nazara is set to further consolidate its position in the Indian online gaming market. This strategic investment aligns with Nazara’s vision of expanding its presence in the fast-growing segments of poker, fantasy sports, and casual gaming.
With Moonshine’s diverse gaming assets under its umbrella, Nazara is well-positioned to capitalize on the opportunities in India’s rapidly evolving gaming ecosystem. As the company continues to grow its portfolio, this acquisition marks a key milestone in Nazara’s journey toward becoming a dominant player in the global gaming industry.
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