OneVerse Gaming’s PokerSaint Acquisition: A Strategic Play in a Challenging Market

Metaverse and gaming tech startup OneVerse Gaming continues its aggressive expansion within India’s RMG sector. Fueled by a $120 Million war chest, their latest strategic acquisition is the online poker platform PokerSaint. This marks their fourth move in the space, bolstering a portfolio that already includes Spartan Poker, Calling Station, and fantasy sports portal BatBall11.

Founded in 2017, Bangalore-based PokerSaint (Pacific Gaming Pvt Ltd) brings a dedicated player base of 8 Lakhs to the OneVerse ecosystem. While the deal’s financial details remain undisclosed, OneVerse assures that PokerSaint’s management will be retained, ensuring a seamless transition and continued innovation.

Consolidation and Growth

“Joining forces with OneVerse marks a significant milestone in our journey. We are proud of what we have achieved at PokerSaint and excited for what the future holds,” said Kshitij Anilkumar, founder of the acquired company. “This partnership will enhance our ability to innovate and expand, bringing unparalleled experiences to our users. With OneVerse’s resources and our deep understanding of the poker community, we are set to revolutionize the online poker industry.”

OneVerse CEO E. Paul Micheal emphasized the strategic value of the acquisition: “This acquisition fits perfectly with our strategic vision and growth objectives. PokerSaint’s pioneering gaming strategies and fair market position make them an ideal addition to OneVerse Gaming as we seek to expand our player base and boost shareholder value over the long term.”

Navigating a Complex Landscape

OneVerse’s acquisition spree comes at a turbulent time for India’s online gaming industry. The imposition of a 28% GST on player deposits has created significant hurdles. Previously enjoying growth rates exceeding 20% annually, the sector has slowed dramatically. Investor confidence has been further shaken by enforcement agencies issuing demand notices to 99 gaming platforms seeking over ₹1 Lakh Crores in retrospective GST taxes dating back to 2017. This has resulted in a funding drought, with layoffs at companies like Hike and Mobile Premier League and even temporary suspensions of operations by others.

Why Now?

OneVerse’s advisor on the transaction, Dhyanesh Sundarmurthy, sees opportunity amidst the turmoil: “As the gaming industry continues to evolve at an unprecedented pace, strategic acquisitions such as OneVerse Gaming’s purchase of PokerSaint exemplify a forward-thinking approach to market expansion. By strategically integrating complementary assets and expertise, companies can position themselves to capitalize on the emerging opportunities and drive sustainable growth in this rapidly evolving sector.”

OneVerse founder Prashanth Joshua previously outlined his strategy for mitigating the GST burden, focusing on streamlining operations and marketing across their portfolio. “Gaming companies can lose up to 20% of revenue on marketing and salaries. By uniting multiple companies, we could slash that overhead by 15%, offsetting the GST’s impact. This gives us deeper investor pockets and lets us outpace the competition. It’s about streamlining, scaling, and winning.”

The Road Ahead

OneVerse’s ambition doesn’t stop here. Paul Micheal has indicated that seven to eight more acquisitions are planned in the RMG and casual gaming categories, with a further investment of ₹250 Crores (~$31 Million) allocated. The company believes the current economic challenges present a unique opportunity for aggressive growth through acquisitions and consolidation.

The Bigger Picture

The PokerSaint acquisition is just one piece of OneVerse’s grand strategy. Integrating PokerSaint’s player-friendly approach with OneVerse’s technology promises a new era of engaging poker experiences and gives them a sizable base to potentially build a sustainable poker network. This could be the key to attracting new audiences and setting industry-leading standards.

With more acquisitions in the pipeline, OneVerse Gaming is poised to become a dominant force in the Indian gaming landscape. Whether their bold strategy will pay off in the face of steep challenges remains to be seen – but one thing’s for sure: the industry is watching closely.