Nazara to invest ₹982 cr in PokerBaazi parent Moonshine; share rises 4%

Listed gaming and sports media company Nazara Technologies has acquired a 47.7% stake in Moonshine Technology Private (Moonshine), the parent company of online poker gaming platform PokerBaazi, for ₹832 crore through a secondary transaction.

The Rekha Jhunjhunwala-backed gaming company will also inject ₹150 crore in primary capital into Moonshine via compulsory convertible preference shares. PokerBaazi claims to be India’s “largest online poker platform”, which contributes to 85% of Moonshine’s net revenue, while its fantasy sports platform SportsBaazi contributes 12%. The company says it had 3,40,000 monthly active users as of May 2024.

Nitish Mittersain, CEO of Nazara Technologies, says the investment in Moonshine represents a significant step in the company's journey to strengthen Nazara’s position as India’s dominant diversified gaming platform. "PokerBaazi has also set new standards in user engagement, innovation, and overall experience. We’re excited to join forces with Navkiran, Puneet, and the entire Moonshine team.”

Baazi Games (MTPL) Founder and CEO Navkiran Singh says partnering with Nazara is the “right step” toward advancing the nation’s gaming ecosystem. "This partnership will also contribute to our aim for global expansion in the gaming space. With the Prime Minister’s recognition of the gaming sector’s role in shaping India’s $1 trillion digital economy, we are confident that our combined efforts will foster innovation, create new jobs, and further India’s place in the global digital economy.”

Shares of Nazara Tech are currently (10.5 am) trading 1.11% up at ₹1,018.00 on the BSE after opening a gap-up at ₹1,035. The share rose 4% to the day’s high of ₹1,049.60 before settling at ₹1,018. At the current share price, the company's m-cap stands at ₹7,674.06 crore.

The company's April-June quarter revenue surged to ₹79.90 crore from ₹64.80 crore in the quarter ending March 2024 and ₹47.50 crore in the year-ago period, while its profit stood at ₹96.30 crore against ₹1,053.50 crore loss in the previous quarter and ₹15.30 crore profit in the year-ago period.

Nazara has earmarked an investment worth ₹830 crore or $100 million towards merger and acquisition for the next 24 months as part of its global expansion plan. This year in March, Mittersain said the company is particularly focused on investing in and acquiring gaming studios globally with a specific focus on India’s 500 million gamers as well as the large North American market.

Over the past few years, the company has been on an acquisition spree under its 'acquire and scale' strategy. In January this year, the online gaming company received the board’s approval for a 10.77% stake in Kofluence Tech, a social media influencer-led marketing-tech platform.