Nazara Technologies Sells 94.85% Stake in OpenPlay to PokerBaazi Parent Moonshine Technology

Strategic Deal Strengthens Moonshine’s Position in Online Rummy Market

In a significant move towards consolidating its real-money gaming (RMG) segment, Nazara Technologies has announced the sale of its 94.85% stake in OpenPlay Technologies to Moonshine Technology, the parent company of PokerBaazi. The deal, valued at ₹104.33 crore, will be executed via a share swap transaction, further strengthening Moonshine’s position in India’s rapidly growing online rummy market.

Key Highlights of the Transaction

• Nazara Technologies will transfer its 94.85% stake in OpenPlay to Moonshine through a share swap deal.
• Moonshine will issue 1,99,890 Compulsory Convertible Preference Shares (CCPS) to Nazara and other sellers as part of the transaction.
• Post-acquisition, OpenPlay will become a subsidiary of Moonshine, where Nazara already holds a 46.07% stake.
• The move aligns with Moonshine’s broader goal of creating a holistic, made-in-India real-money gaming ecosystem.

“The acquisition of OpenPlay is in line with Moonshine’s vision of building a holistic made-in-India RMG ecosystem. We look forward to leveraging OpenPlay’s strong foundation and accelerating growth by enhancing user experience with our best-in-class technology and product innovations,” said Navkiran Singh, founder of Moonshine Technology.

Nazara’s Investment Strategy & Past Acquisition of OpenPlay

Nazara had initially acquired OpenPlay for ₹186.4 crore in August 2021. However, the firm’s latest move indicates a strategic realignment of its RMG assets under Moonshine Technology.

Despite being a part of Nazara’s portfolio for over three years, OpenPlay’s contribution to overall revenue remained relatively modest. The platform generated ₹37.4 crore in revenue for FY24, accounting for only 3.3% of Nazara’s total turnover.

This restructuring follows Nazara’s ₹982 crore investment in Moonshine in September 2024, which marked its largest financial commitment to date in the gaming sector. This included:

• ₹831.5 crore to Moonshine’s existing shareholders via a secondary transaction.
• ₹150 crore in primary capital to fuel Moonshine’s growth.

Expanding Moonshine’s Online Rummy Portfolio

The acquisition of OpenPlay’s Classic Rummy platform will allow Moonshine to integrate it into its existing RMG portfolio, enhancing its competitive edge against industry leaders like:

• Games24x7’s RummyCircle
• Gameskraft’s Rummyculture
• Head Digital Works’ A23
• Junglee Rummy

By leveraging advanced technology, data analytics, and marketing expertise, Moonshine aims to scale its online rummy operations while optimizing user engagement.

“We at OpenPlay are excited to join forces with an industry leader like PokerBaazi/Moonshine. This marks a significant step in creating a more formidable RMG powerhouse. We are confident that Moonshine’s proven expertise in RMG will enable us to unlock substantial value in the rummy segment,” said OpenPlay CEO Deepak MV.

Challenges in the Indian RMG Market Amidst 28% GST Implementation

The real-money gaming industry in India has been undergoing significant regulatory changes, particularly with the introduction of the 28% Goods and Services Tax (GST) on online gaming in October 2023.

Despite the challenges posed by the new tax regime, OpenPlay has demonstrated resilience by optimizing costs and strengthening VIP retention, according to Nazara. The company believes that the deal will help:

• Improve player engagement through cross-platform integration.
• Optimize user acquisition using shared data-driven insights.
• Enhance cost efficiency through unified infrastructure and marketing efforts.

“This acquisition ensures a scalable and sustainable RMG business model under Moonshine’s leadership,” Nazara stated in its official announcement.

Consolidation in India’s Real-Money Gaming Market

India’s RMG industry has been experiencing a wave of consolidation, with major players acquiring smaller firms to expand their market reach. Some recent notable deals include:

• Head Digital Works acquiring Delta Corp’s skill gaming unit, Deltatech Gaming, for ₹491 crore.
• Metaverse and gaming tech firm OneVerse purchasing poker platforms Spartan Poker, Calling Station, and PokerSaint, along with fantasy sports app BatBall11.

Future Outlook: Moonshine’s Strategic Vision

With OpenPlay now under Moonshine’s umbrella, the company aims to strengthen its market leadership in India’s rummy gaming segment while expanding its broader real-money gaming portfolio.

As Moonshine continues to integrate OpenPlay’s technology, user base, and marketing capabilities, the acquisition is expected to further solidify its position in the competitive RMG market.

The Indian gaming sector remains a high-growth industry, and despite regulatory challenges, firms like Moonshine are positioning themselves for long-term success by focusing on product innovation, strategic acquisitions, and market consolidation.