Passion Gaming, which owns and operates online gaming startup RummyPassion, has raised $3.75 Mn funding in an all-cash deal from UK-based Stride Gaming. As part of the deal, the online gaming company has divested 51% stake in itself to Stride Gaming.
According to the official statement, the investment will enable Passion Gaming to achieve faster growth. Furthermore, the funding will be utilised to strengthen its marketing, technology and customer service teams.
Commenting on the development, Stride Gaming CEO Eitan Boyd said, “We are delighted to announce this investment which gives Stride Gaming a highly attractive and strategic yet low-risk entry to a rapidly growing and legalised market with enormous potential. We have been monitoring the Indian market for some time as we see strong dynamics in the current environment as well as long-term growth potential. Our UK market experience and proprietary technology advantage, combined with Passion Gaming’s market positioning and operational focus create a highly attractive proposition.”
As stated by Boyd, Stride Gaming may choose to acquire the remaining 49% stake in Passion Gaming from existing shareholders over the next three to five years, depending upon the future financial performance of RummyPassion.
For now, the UK-headquartered online gaming operator has been given the right to appoint three directors to the Passion Gaming board. It is currently focussed on expanding its presence in emerging markets like India, stated Boyd.
Passion Gaming: Capitalising On The Gaming Market With RummyPassion
Launched in 2015, Passion Gaming is an online gaming platform that offers digital card games like online rummy to its users. Its flagship site, RummyPassion, is currently managed by a team of more than 35 professionals based in Chandigarh.
According to founder and CEO Bobby Garg, the company was looking to raise funds a while now, with the aim of expanding its reach and presence in the domestic gaming market. Through Stride Gaming, it now plans to strengthen its footprints in the UK market.
Speaking about the latest fundraise, Garg stated, “We are delighted to partner with Stride Gaming which is widely recognized as a leading operator and platform provider to the online gaming industry, with an enviable growth track record. Our vision is to provide exhilarating, safe and secure skill gaming to players in India. Working with Stride Gaming places us in a strong position to bring international standards to rapidly growing Indian gaming market as we continue to focus on player acquisition, engagement and loyalty.”
Stride Gaming Eyeing Entry In Emerging Online Gaming Markets
Listed on the London Stock Exchange’s Alternative Investment Market (AIM) in 2015, Stride Gaming is a company with an international reach in the mobile social gaming market, with a focus on North America. Boasting a diverse portfolio of 143 brands, Stride Gaming claims to have a 25% share of the UK online bingo market.
It also licenses its proprietary platform to gaming operators, media partners and retailers both in the UK and globally. The investment in Passion Gaming is in line with the company’s long-term strategy to enter attractive, legalised and low-risk markets like India.
Home to the second largest Internet-using population in the world, India currently ranks among the top five countries for online gaming. According to a Google KPMG report published in May 2017, the online gaming industry in India is estimated to be worth over $360 Mn. As per a report by Flurry Analytics, the country’s mobile gaming industry is poised to reach $1 Bn by 2021. However, certain categories, such as card and casino games, have witnessed a decline in recent years. The newly-secured funding from Stride Gaming comes at a time when Passion Gaming is doubling down on its efforts to gain a stronghold in the online rummy and card games market with RummyPassion.