Acquisitions on the horizon in real-money gaming sector
NEW DELHI : India’s nascent real-money gaming industry is going through a phase of consolidation, with larger firms looking at smaller startups that may help improve the former’s net user base, and in the long run, revenue. Industry stakeholders such as Mumbai-based unicorn Games24x7, as well as publicly-listed gaming firm Nazara Technologies, are among those that believe that consolidation across the industry is inevitable—but finding offers with the right valuation poses a challenge. In an interview with Mint, Sudhir Kamath, chief operating officer of Nazara, said the company will make strategic acquisitions in the long run, as and when it finds the right opportunities.
“We won’t be rushing to make acquisitions, but they are certainly a part of our overall strategy in the near term. We typically identify opportunities that are at least on track towards profitability, and once we locate the right ventures, we’ll consider them," Kamath said. He added that such consolidation is inevitable—not just for Nazara—but across the industry.
“Smaller ventures will be affected in terms of the cash available to them, since most firms across the industry aren’t passing on the impact of the 28% GST on net revenue on to users. As a result, it makes sense for larger firms to come in by helping mitigate tech infrastructure costs, and other operating expenditures," he said. Smaller firms are eager to stay independent in the near term, although acquisitions are seen by most as “inevitable" in 2024.
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