The maiden acquisition will enable Octro to expand presence in key international markets, tap into new demographics, and drive substantial cost efficiencies
DGN Games’ acquisition is part of Octro’s broader strategy to grow inorganically while leveraging its strong technical expertise and user base in India
Founded in 2006 by Saurabh Aggarwal, Peak XV-backed Octro is a game development studio that counts popular gaming titles such as Teen Patti, Play Rummy and Octro Poker in its portfolio
Indian mobile gaming company Octro on Thursday (December 14) announced the acquisition of Israel-based DGN Games for an undisclosed amount.
The acquisition will enable Octro to expand presence in key international markets such as Australia and the US, and tap into new demographics to fuel growth. Octro chief finance officer (CFO) Deepak Goyal also said that the transaction will help the company drive substantial cost efficiencies.
Leveraging synergies between the two companies, the move will allow Octro to acquire DGN’s technical expertise and talent pool that spans countries such as Israel, Ukraine, and Australia.
In a statement, Octro said that the deal will harness the collective strength of the two companies to develop titles that cater to global audiences and to elevate the gaming experience for players.
“This acquisition is a pivotal moment for Octro Inc. DGN has established itself as a leading force in the gaming industry, and joining forces allows us to leverage our combined strengths. We are excited about the potential for innovation and the opportunity to bring even more exciting gaming experiences to players around the world,” said Octro CEO Saurabh Aggarwal.
Commenting on the development, DGN Games’ CEO Dan Wiegenfeld added, “This is an exciting day for DGN Games. Becoming part of Octro is opening the next chapter in the history of our company. We are confident that together with the talented Octro team we will be able to deliver an even better game experience for our players, reach new audiences to continue our growth and create great value for our new shareholders.”
This is the first acquisition for the homegrown gaming studio. As per the company, the deal is part of Octro’s broader strategy to grow inorganically while leveraging its strong technical expertise, user base in India and the current market conditions.
As per CFO Goyal, Octro now plans to scout the market for more such assets to drive sustained success and growth over the coming years.
Founded in 2006 by Aggarwal, Octro is a game development studio that counts popular gaming titles such as Teen Patti, Play Rummy and Octro Poker in its portfolio. The company claims to cater to more than 200 Mn players and is backed by Peak XV Partners, which invested $15 Mn in the gaming company way back in 2014.
On the other hand, DGN Games is an Israel-headquartered social and mobile gaming company. The social casino company claims to create immersive slots experiences for users globally and also has offices in Australia and Ukraine.
The development comes at a time when the Indian online gaming startup ecosystem has been reeling under the impact of the 28% GST levied on the full value of bets placed in online games, regardless of whether it is a game of skill or chance.
The move has sent the entire ecosystem into a tizzy. While some such as Hike, Mobile Premier League (MPL) have laid off hundreds of employees, others such as Fantok have temporarily shut down operations.
What has not helped is the flurry of notices, around 71 in number, issued by enforcement agencies against online gaming platforms for alleged tax evasion to the tune of INR 1.12 Lakh Cr. This has resulted in investors becoming wary of investing in the space, which has dried up funding for the ecosystem.
Despite this, many online gaming players continue to raise capital. In October, Gurugram-based casual gaming studio Funstop Games secured $1.5 Mn in a funding round led by InfoEdge Ventures. Prior to this in September, casual gaming company QuriousBit raised $2 Mn in a seed funding round led by gaming-focussed VC firm Lumikai.
