PC: Yes Punjab News
In what can be termed a big coup that sent ripples across the gaming landscape, Nazara is set to invest Rs 982 crore in Moonshine Technology, the parent company of PokerBaazi. This strategic investment would see Nazara hold a substantial stake in Moonshine through a combination of secondary and primary purchases of its shares, marking a big milestone in the realm of skill-based gaming.
The Nazara board has given its nod to the proposed acquisition of around 19 lakh equity shares of Moonshine frGom the existing shareholders like PSM Group, Bellerive Capital, etc, through secondary purchase. The proposed deal will see Nazara pick up a 47.7% stake in Moonshine for an overall consideration of Rs 832 crore ($100 m), which is derived from a secondary purchase of Rs 592 crore and a share swap worth Rs 239 crore.
Besides this secondary purchase, Nazara would also invest Rs 150 crore in acquiring primary shares of Moonshine to seal its position as the majority stakeholder in PokerBaazi. The deal underlines Nazara’s commitment toward expanding its reach and play in the growing skill-based gaming vertical, more so in strengthening its position in the high-value poker segment.
This deal between Nazara and Moonshine marks the largest consolidation in the poker space. PokerBaazi consists of more than 85% of the net revenue at Moonshine, while the company’s fantasy sports platform, SportsBaazi, contributes 12% to its overall revenue stream. More interestingly, as of May 2024, PokerBaazi is engag`ing approximately 340,000 monthly active users.
As regards financial performance, PokerBaazi has seen phenomenal growth: its unaudited revenues for the year to March 2024 came in at Rs 414.9 crore with an EBITDA of Rs 41.2 crore, while for FY23, it reported a turnover of Rs 268 crore with an EBITDA of Rs 27 crore. That points toward sound financial footing which the company occupies.
Although there was a section of scepticism over the deal, Nazara’s proactive investment strategy across various sectors also aligns with the bigger vision of expansion and diversification within the gaming ecosystem. The company has been on an acquisition and investment spree since FY25, with notable involvements in six startups in recent months.
Some of the recent acquisitions by Nazara include a stake in e-sports startup Stan, UK-based Fusebox Games, and Kiddopia developer Paper Boat Apps, among others, which showcases its aggressive growth trajectory and commitment to innovation.
The strategic investment in Moonshine Technology, at a time when Nazara is navigating the evolving landscape of gaming to position itself as an important player, is a landmark moment in its growth journey underscoring its strategic foresight and commitment toward stakeholder and user value creation.
