Head Digital Works Buys Adda52 Parent For INR 491 Cr

Online gaming company Head Digital Works Private Limited (HDW), the parent entity of A23, has acquired Adda52’s holding company Deltatech Gaming Limited (DGL) for INR 491 Cr.

The transaction will be completed in two tranches, with HDW initially acquiring 51% stake in DGL. 

Following that, DGL will merge into HDW, with a 5.7% stake in the company.

With this acquisition, HDW aims to expand its footprint in the online poker market and strengthen its position in the Indian online gaming industry.

“The acquisition will enable us to offer an enriched gaming experience, drive technological advancements, and cater to the evolving preferences of our users. Adda52 has been a trailblazer in the online poker arena with an excellent platform and a strong, loyal user base,” HDW founder and chief executive officer Deepak Gullapalli said.

Founded in 2011, DGL is a subsidiary of Delta Corp Limited, and owns online gaming apps including Adda52 and Addagames. The company counts Adda52 online poker platform as one of its prominent gaming brands. The poker platform claims to have more than 4.2 Mn registered users.

It is pertinent to note that the company had plans to hit the bourses back in 2022. It filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise INR 550 Cr through an initial public offer (IPO) at that time. However, the IPO couldn’t materalise. 

On the other hand, HDW was founded in 2005 as an online skill-based gaming company. Its flagship brand A23 offers several real money gaming platforms like A23 Rummy, A23 Poker and Cricket.com to more than 70 Mn users. It launched its poker platform in October 2024. 

Besides, the gaming company was also struggling with the government’s imposition of 28% GST. In 2023, the Supreme Court refused to grant interim relief against the GST demand notices to HDW and Games24x7. Later last year, the apex court directed the Centre and GST department to  reply to the company’s plea.

Giving some relief to real money gaming startups, the SC put a temporary halt on GST proceedings against 49 real money gaming companies last month. 

Despite having GST troubles, the Indian gaming sector continues to boom and has seen several notable acquisitions last year. For instance, gaming major Nazara Technologies acquired multiple companies including Fusebox Games, Paper Boat Apps Pvt Ltd (PBA), StarLadder, Trinity Gaming among others. 

As per a report by Lumikai, India’s gaming industry is anticipated to grow to $9.2 Bn by FY29.