OneVerse acquires 2 more gaming firms, sets aside Rs 250 crore in growth capital

Metaverse and gaming tech company OneVerse has acquired online poker platform Calling Station and fantasy sports app BatBall11 as part of its acquisition plan.

In February, OneVerse acquired online poker platform Spartan Poker as part of its plan to acquire 13 companies to emerge as the leading gaming firm in India. It has earmarked $120 million for the first phase of investment, which will include eight firms.

It is also investing Rs 250 crore in growth capital. “The investment will be across OneVerse's portfolio of planned investments,” CEO Paul Micheal said on March 12.

"They (Batball11 and Calling Station) are both efficient companies when it comes to unit economics. They have achieved substantial growth with minimal capital infusion," he said.

All three firms have an extensive user base. The acquisition presents an opportunity for seamless integration of networks and players on the platform, said Dhyanesh Sundarmurthy, Co-Head, RMB Capital India, who acted as OneVerse's adviser on the transactions.

“The terms of the buyout ensure that the management teams of all three firms will remain in place and continue driving growth initiatives," he said.

Consolidation was the way forward for the gaming sector, Micheal had told Moneycontrol in an earlier interaction.

OneVerse's acquisition portfolio consists of real-money gaming (RMG) companies, which have been hit by 28 percent goods and services tax (GST) on player deposits.

OneVerse founder Prashanth Joshua said earlier GST changes had put pressure on the profitability of RMG companies and consolidation would help mitigate the pressure.

Gaming companies spend 20 percent of their revenue on operational costs, which include marketing, salaries, and technology costs, among others, he said.

By consolidating seven to eight companies, they would save at least 15 percent of the companies' expenses.

"We are able to offset the negative impact of GST and as a larger company, we are able to access a larger capital pool in terms of investor growth funds. We can grow faster as a portfolio company than an individual firm. There will be a lot of consolidation at an operating level with cost efficiencies that will build in," he said.