Nazara Tech buys 47.7% stake in PokerBaazi parent for ₹982cr
Nazara Technologies has made a significant investment of ₹982 crore in Moonshine Technology, the parent company of online poker platform PokerBaazi. This marks the largest investment by Nazara, a diversified gaming and esports major. The move is expected to strengthen Nazara's position in the online skill-gaming sector, aligning with founder Nitish Mittersain's vision of making gaming the company's top revenue driver in future years.
Nazara to acquire 47.7% stake in Moonshine Technology
As part of the deal, Nazara Technologies will initially acquire a 47.7% stake in Moonshine Technology for ₹831.5 crore from existing shareholders. This includes founder Navkiran Singh, co-founders Puneet Singh, Varun Ganjoo, Avneet Rana and Anirudh Chaudhry along with Gurjeet Kaur, private equity firm Bellerive Capital and Influencers Interactive. The company will pay ₹592.26 crore in cash and the remaining ₹239.25 crore through a share swap representing a 3.17% stake in the company.
Additional investment and recent acquisition
Nazara Technologies plans to invest an additional ₹150 crore in primary capital into Moonshine Technology through compulsory convertible preference shares. This development follows closely on the heels of Nazara's subsidiary acquiring a 15.86% stake in gaming community startup Stan for ₹18.4 crore in cash from existing shareholders. Stan offers a platform that allows creators to build and monetize communities, enabling users to engage with their favorite gaming creators or celebrities through digital collectibles, chat or audio rooms, and exclusive communities.
Nazara Technologies's shares rise following investment
Following the announcement of the investment, shares of Nazara Technologies rose by 4% to ₹1,049 in morning trade. However, at the time of writing, the stock had pared some gains to trade at ₹1,026, up 1.8%. The Nazara Technologies stock has gained 17% in three months. This positive market response indicates investor confidence in Nazara's strategic moves within the gaming sector.
Moonshine Technology's growth
Moonshine Technology, founded in 2014, initially focused on online poker (PokerBaazi) and later expanded into card games (CardBaazi), fantasy sports, and spectator gaming (SportsBaazi). PokerBaazi is Moonshine Technology's flagship product that contributes more than 85% to its FY24 net revenue. The online poker platform claims to have had around 340,000 monthly active users as of May 2024. SportsBaazi, previously known as BalleBaazi, contributed more than 12% of the company's FY24 net revenue.
