SUMMARY
The company plans to make around seven to eight more acquisitions in the upcoming days in RMG as well as casual gaming catagories
It is also planning for an additional investment of INR 250 Cr (around $31 Mn)
Both the latest acquired companies have a combined user base of 1.4 Mn
Metaverse and gaming tech startup OneVerse Gaming has bought online poker platform Calling Station and fantasy sports platform BatBall11 to strengthen its foothold in the gaming space.
However, the company did not disclose the financial terms of the transactions.
This comes days after OneVerse Gaming acquired online game development studio Spartan Poker for an undisclosed amount.
OneVerse’s CEO E. Paul Micheal told Inc42 that this acquisition is a continuation of its M&A strategy of synergising the gaming ecosystem by bringing various gaming players together.
Micheal added that the company plans to make around seven to eight more acquisitions in the upcoming days in RMG as well as casual gaming categories.
It is also planning for an additional investment of INR 250 Cr (around $31 Mn). “The investment will be across OneVerse’s portfolio of planned investments,” CEO E. Paul Micheal said.
The company said in a statement that the recent macroeconomic challenges have presented favourable conditions for its M&A efforts. It further added that the buyout terms ensure retaining the management teams of all the three firms.
Moreover, both the latest acquired companies have a combined user base of 1.4 Mn.
Micheal said, “Both companies are very efficient when it comes to unit economics and are in a high growth trajectory phase. We believe that they bring a valuable synergy to our gaming portfolio not just in terms of business value but the operating efficiency of their teams which is crucial for the next phase of growth.”
Dhyanesh Sundarmurthy, Co head, RMB Capital India, who acted as OneVerse’s advisor on the transaction, said, “The acquisitions are ideal assets for OneVerse’s metaverse-centric gaming ecosystem. The acquisition presents an opportunity for seamless integration of networks and players on the platform, promising immersive transactional experiences within the online gaming realm.”
This 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. As a result, the entire ecosystem is grappling with a turbulence. While, some such as Hike, Mobile Premier League (MPL) have laid off hundreds of employees, others such as Fantok have temporarily shut down operations.
This has further been intensified with enforcement agencies issuing notices, around 71 in number, 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.
In December last year, yet another gaming studio Octro announced the acquisition of Israel-based DGN Games for an undisclosed amount.
