SUMMARY
- Nazara secures shareholder approval to acquire a 47.7% stake in Moonshine Technology for INR 981.5 Cr.
- The deal includes cash payments, a share swap, and additional primary capital investment.
- PokerBaazi, Moonshine’s core product, generated 85% of its revenue in FY24.
Nazara Technologies, India’s leading diversified gaming and sports media company, has received shareholders’ approval to acquire a 47.7% stake in Moonshine Technology, the parent company of online poker platform PokerBaazi. The deal was sanctioned during Nazara’s extraordinary general meeting held on October 12, marking a strategic move to solidify its position in the growing online skill-gaming sector.
This acquisition, reported earlier by Inc42, involves a transaction valued at INR 831.5 Cr through a secondary sale. Of this, INR 592.26 Cr will be paid in cash, while INR 239.25 Cr will be compensated through a share swap, representing a 3.17% stake in Nazara. In addition, Nazara has invested INR 150 Cr in Moonshine Technology‘s primary capital by purchasing compulsorily convertible preference shares, bringing the overall deal value to INR 981.5 Cr—the company’s largest investment to date.
Moonshine Technology, founded by Navkiran Singh in 2014, started with PokerBaazi, which contributed 85% of its total revenue in FY 2023-24. It later expanded into card games (CardBaazi), fantasy sports, and spectator gaming (SportsBaazi), positioning itself as a versatile player in the online gaming market.
This acquisition comes at a time when the online gaming industry is navigating regulatory uncertainties, particularly after the Indian government raised GST on online gaming from 18% to 28%. Despite this, Nazara remains focused on expanding its portfolio and recently set aside $100 Mn for global growth initiatives.
Shares of Nazara Technologies ended 1.3% lower at INR 918.3 apiece on the BSE on Tuesday.
