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Indian startup PlaySimple sells for over Rs 2691 crore, shows word games and puzzles are big business

Indian startup PlaySimple sells for over Rs 2691 crore, shows word games and puzzles are big business

PlaySimple has shown massive growth in the past year, and its growing collection of word games now helps MTG diversify its own gaming portfolio. MTG also seeks to increase its female gamer base through the acquisition.

(Image: MTG) (Image: MTG)
Story highlights
  • MTG has acquired 100 per cent stakes in PlaySimple for a total sum of approximately $360 million.
  • Part of this sum will be paid in company shares.
  • There are also performance-based earn-outs for PlaySimple in the deal.

In one of the largest exits among the Indian gaming startups, PlaySimple has been acquired by Swedish gaming major Modern Times Group (MTG). The companies have closed a deal of about $360 million (Rs 2691 crore) for the acquisition.

Other than the set amount, there is also a $150 million (Rs 1121 crore) reward for the Indian gaming firm if it manages to hit certain performance metrics. The conditions for the performance-based earn outs, however, have not been made public yet.

As for the acquisition amount of $360 million, MTG will pay 77 per cent of the acquisition sum to the Indian game developer in cash. The rest of the amount for a 100 per cent acquisition will be paid in the form of MTG class B shares. MTG states that it will "call for an Extraordinary General Meeting to resolve on the consideration shares."

In its statement, MTG cites PlaySimple's exponential market growth as the propellant for this acquisition. It mentions that the company is one of India's leading game developers and publishers and "is one of the global leaders in the fast-growing mobile word games genre."

Shedding some light on the metrics, it explains that PlaySimple grew its revenues by 144 per cent in 2020 to USD 83 million. The growth is projected to continue in 2021, with the first half revenues up by approximately 82 per cent.

PlaySimple currently serves the mobile word games genre and has an active portfolio of a total of nine games. These include titles like "Daily Themed Crossword", "Word Trip", "Word Jam", and "Word Wars." It collectively has over 75 million installs and 7 million monthly active users.

Going forward, PlaySimple plans to launch four new games this year and might also expand into the card games genre.

Acquisition of PlaySimple further diversifies MTG's portfolio that now includes a wide variety of gaming genres. These include city-building and strategy games by InnoGames, mobile racing by Hutch, idle games by Kongregate, tower defence games by Ninja Kiwi, and word games with card games soon to follow by PlaySimple.

MTG also expects the acquisition to pay off by bringing more female gamers to its platforms. PlaySimple's growing audience of female gamers, which today makes up close to 80 per cent of its total player base, is supposed to help with that.

Published on: Jul 02, 2021, 4:24 PM IST
Posted by: BT Siteadmin, Jul 02, 2021, 4:24 PM IST