Nazara acquires skill based real money gaming company Openplay
The startup scene in industry is growing at a rapid rate, and more capital than ever is being funneled into the space, which is increasingly fueled by outside investments.
This in turn means that more and more Indian startups are turning into unicorns and dwarfing other existing startups in their industry, which leads to an increase in mergers and acquisitions.
The same is true in the Indian betting startup environment, where key acquisitions in the industry are taking place in an attempt to innovate the space and win market share. The latest acquisition that has made headlines comes from Nazara Technologies.
Nazara Technologies Ltd has acquired the Hyderabad-based skill gaming company OpenPlay Technologies. Nazara acquired 100% stake in the company for a whopping Rs. 186.4 crore.
OpenPlay operates a consumer gaming platform branded as Classic Games. They host skill-based games and had a turnover of Rs 53.48 crore during the last financial year.
Nazara’s Strategic Investment
In the last few years, Nazara Technologies has established itself as a leading mobile games company in India, Middle East, Africa, South East Asia and Latin America. This acquisition will further strengthen their position in the industry.
Nazara will acquire 23.3% of the issued and paid-up share capital of OpenPlay for a sum of Rs 43.43 crores, by Q2 of financial year 2021-22. The remaining tranches will be transferred to Nazare in the following 2 quarters of the same financial year.
What does this acquisition mean for Nazara Technologies?
There is no doubt that Nazara will be able to strengthen its play in the real money gaming space in India and become a much bigger player.
To really understand how this acquisition will shape the future of Nazara Technologies and the online betting landscape in India, we got in touch with Mr Tomesh Kulkarni, Chief Editor of MyBetting.in, the biggest betting informational sites in India.
The following is a transcript of the interview with Tomesh Kulkarni.
Q: Hello Mr. Kulkarni, thanks for taking the time to talk today. First off, what are your thoughts on Nazara’s acquisition of OpenPlay
TK: Honestly, this is a very important acquisition for Nazara. Although OpenPlay is Nazara’s eighth acquisition till date, this acquisition shows the direction that Nazare is trying to take as a company by buying up existing market share holders within the gaming industry.
At this point in time, real-money gaming contributes to 2-3% of the overall revenue of Nazara. The firm was playing it safe in the past and was not heavily investing in the real money gaming space. This was possibly due to the legal uncertainties around this space.
However, this acquisition is a bold step from Nazara technologies, and shows a commitment to strengthening their position in the real-money gaming space and a belief in the Indian gaming market.
Q: In your opinion, what triggered Nazara’s interest in OpenPlay?
A: The products offered by OpenPlay are of the highest quality within the industry.
And surely, with the know-how that Nazara brings to the table, they have this idea that they can make the products even better and become one of the top players in the market.
Q: What does this acquisition mean for the online gaming market in India?
TK: This is a strong move and shows that real money gaming is here to grow in India. According to our research at MyBetting, India has millions of real money gaming enthusiasts. The market is opening up for these players.
I hope that the government makes laws in the favor of this business, which will allow the market to continue flourishing in the years to come.