News Post

Acquisitions on the horizon in real-money gaming sector

Livemint · 11m

India's real-money gaming industry is witnessing a wave of consolidation, with larger firms eyeing smaller startups to expand their user base and generate more revenue. Industry giants such as Games24x7 and Nazara Technologies believe that consolidation is inevitable, although finding startups with the right valuation is a challenge. Smaller ventures may be affected due to limited cash flow, making it logical for bigger companies to acquire them to help with infrastructure costs. The acquisitions are expected to occur in 2024, with around 20 startups currently considering offers. The recent implementation of a new tax regime has affected valuations, leading to cautious acquisition strategies. Despite this, companies and investors remain optimistic about the sector's growth and potential profitability.