Octro's Strategic Foray: Gaming Horizons Expand with DGN Games Acquisition

By Ritwik Ghosh,Kolkata India

DGN Games

Deciphering the intricacies of the gaming realm, Octro, the Indian mobile gaming juggernaut, has unfurled its strategic maneuver by acquiring DGN Games, a prominent entity hailing from the technological crucible of Israel. The financial intricacies of this transaction remain undisclosed.

This strategic synergy promises to transcend geographical boundaries, propelling Octro’s influence into pivotal international markets, including the enigmatic landscapes of Australia and the United States. In the crucible of this amalgamation, a fertile ground emerges to cultivate diverse demographics, igniting the flames of expansion. The maestro behind Octro’s financial symphony, Deepak Goyal, envisions a tapestry of substantial cost efficiencies unfurling as a result.

Diving into the tapestry of cross-cultural collaboration, Octro stands poised to reap the harvest of DGN’s technical prowess and a reservoir of talents spanning the realms of Israel, Ukraine, and Australia. A strategic marriage, indeed, laying the foundation for a joint venture destined to craft gaming narratives tailored for the discerning global audience, thereby elevating the entire gaming experience to unparalleled heights.

In a resonant proclamation, Octro avowed that this acquisition stands as an epochal juncture for Octro Inc. The inkling of DGN Games’ prowess has etched itself as an indomitable force in the gaming cosmos. The convergence of strengths, a metaphorical fusion of two formidable entities, resonates with the promise of innovation and the prospect of bequeathing exhilarating gaming odysseys to players spanning the globe. Such is the sentiment echoed by the luminary at Octro’s helm, CEO Saurabh Aggarwal.

Commenting on this cosmic alignment of gaming destinies, DGN Games’ helmsman, CEO Dan Wiegenfeld, expressed elation, deeming it an epochal day for their gaming bastion. The union with Octro unfurls a new chapter in the annals of their corporate odyssey. The belief resonates that, hand in hand with Octro’s adept team, an enhanced gaming panorama awaits, extending its tendrils to fresh audiences, fueling perpetual growth, and curating value for their newfound stakeholders.

This landmark acquisition marks a virgin territory for the homegrown gaming studio, a cornerstone in Octro’s grand strategy to burgeon through inorganic means. A strategy that, in the crucible of market dynamics, hinges on capitalizing on its formidable technical prowess, coupled with a robust user base entrenched in the Indian gaming tapestry.

Foreseeing a continuum of success and growth, CFO Goyal maps the trajectory of Octro’s journey, scouting the market landscape for more such assets that can fuel the engines of sustained prosperity.

Established in 2006 by the visionary Aggarwal, Octro unfurls its banner as a game development sanctum, boasting an illustrious portfolio featuring gaming gems such as Teen Patti, Play Rummy, and Octro Poker. An assertion echoed by the company is their outreach to a colossal player base exceeding 200 million, under the patronage of Peak XV Partners, who injected $15 million into the gaming juggernaut in 2014.

On the opposing flank, DGN Games emerges as an Israel-centric citadel of social and mobile gaming prowess. This social casino virtuoso weaves immersive slot sagas for a global audience, its operational wings spanning across Australia and Ukraine.

The narrative unfolds against the backdrop of an Indian online gaming landscape grappling with the ramifications of a 28% GST levy on the totality of wagers placed in online games, irrespective of the blend of skill and chance. This fiscal tempest has cast a shadow over the entire ecosystem, leading entities like Hike and Mobile Premier League (MPL) to shed jobs, while others, like Fantok, temporarily suspend operations.

Compounding the conundrum are a deluge of notices, a staggering 71 in number, dispatched by enforcement agencies, accusing online gaming platforms of tax evasion to the tune of INR 1.12 Lakh Cr. This has translated into a palpable investor trepidation, choking the lifeline of funding for the gaming panorama.

Yet, in the face of this tempest, the resilient spirits of online gaming entities persist in raising capital. In a testament to this tenacity, Funstop Games secured $1.5 million in October, shepherded by InfoEdge Ventures. Preceding this triumph, QuriousBit, a casual gaming entity, garnered $2 million in a seed funding round steered by gaming-focused VC firm Lumikai.

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