Nazara Tech completes Rs 150 crore investment in PokerBaazi parent Moonshine Technology amid GST challenge

Nazara Technologies' acquisition of Pokerbaazi (Moonshine Technology) is aimed at strengthening its presence in the growing online skill-gaming sector.

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26 Aug, 2025 12:21

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Nazara Technologies has completed its Rs 150 crore investment into Moonshine Technology, the parent company of online poker platform PokerBaazi. The investment, announced on September 12, marks the second phase of Nazara's Rs 982 crore deal to acquire a significant stake in Moonshine.

In the latest development, Rekha Jhunjhunwala-backed Nazara invested Rs 150 crore through the subscription to 2.87 lakh compulsorily convertible cumulative preference shares of Moonshine, per an allotment letter received by the company on September 26. Rekha Jhunjhunwala holds an 8.37 percent stake in Nazara Technologies, as of the last update.

Nazara Technologies share price fell on Friday, September 27. It was trading at Rs 979, down 1.1 percent from the previous close. In the last one year, the stock has gained 18 percent with a market capitalisation of about Rs 7,500 crore, underperforming benchmark Nifty 50 index. Nazara stock got hit earlier this year with earnings concerns and reduction in institutional shareholding, falling as much as 36 percent during January-May.

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Earlier, Nazara Technologies had announced its plan to acquire a 47.7 percent stake in Moonshine for Rs 831.5 crore. Of this, Rs 592.26 crore would be paid in cash, while Rs 239.25 crore would be paid via a share swap, representing a 3.17 percent stake in Nazara.

This investment, Nazara's largest to date, is aimed at strengthening its presence in the growing online skill-gaming sector. Moonshine derives over 85 percent of its revenue from PokerBaazi, which had 3.4 lakh monthly active users as of May 2024. Its fantasy sports platform, SportsBaazi, contributes 12 percent to the company’s revenue.

Nazara’s challenges with GST and regulatory hurdles

Nazara's aggressive push into online skill gaming comes at a time when the sector is grappling with significant regulatory challenges. The 28 percent Goods and Services Tax (GST) on online gaming, introduced in October 2022, has been a major obstacle for companies operating in the space. The tax, which is applied to the full value of bets placed rather than just the platform’s revenue, has raised concerns about profitability and sustainability for many operators.

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Despite this, Nazara has chosen to go ahead with its investments, betting on the long-term potential of the sector. Founder Nitish Mittersain has expressed optimism about the future of online gaming in India, noting that gaming is poised to become the biggest revenue generator for the company. Industry players continue to seek clarity on the tax regime and expect some relief from policymakers as the sector expands.

Nazara's acquisition spree

The Moonshine investment is part of a broader acquisition strategy by Nazara to diversify its gaming portfolio and expand internationally. In recent years, the company has been highly active on the mergers and acquisitions front. Nazara's acquisitions include the Indian franchise of Comic Con, West Asia and Turkey-focused marketing firm Publishme, Singapore-based events company Branded, and Turkish esports firm Ninja Global.

In addition to these, Nazara has expanded its gaming footprint by acquiring UK-based gaming studio Fusebox Games, a creator of interactive story-driven games, and US-based content platform Deltia’s Gaming, which focuses on gaming-related entertainment.

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