Last Updated on 22/11/2021 by Riya
PlaySimple, an Indian game development startup is backed by MTG, a Swedish e-sport entertainment company paid $360 million for the Indian startup. Bangalore-based startup “PlaySimple” is behind the running of popular games like “Daily Themed Crossword,” “Word Trip,” “Word Jam,” and “Word Wars.” It has been observed that video games are primarily enjoyed by men; however, the games made by PlaySimple are also enjoyed by females.
PlaySimple currently solely creates word games, but it is expected that by the end of 2021, the company will also release card games for its users. The company agreed to buy PlaySimple on the condition that it would pay 77 percent of the purchase price in cash and the remaining amount in shares.The deal, which was finalized on Friday, will open numerous doors for Indian e-sport startups.
Because the deal is considered one of the largest deals of this year for an e-sport start-up, it will also inspire other international investors to invest in Indian e-sport startups. PlaySimple had also backed by Elevation Capital and Chiratae Ventures in 2016 and secured $4.5 million in a funding round.
PlaySimple generated $83 million in sales last year, and the homegrown e-sport firm is expected to generate more than $60 million in sales by the end of 2021. The startup’s quickly increasing sales encouraged MTG to invest in the platform, as the company’s acquisition would help MTG boost its sales.
MTG Group President and CEO Maria Redin stated in a statement, “PlaySimple is a rapidly evolving and highly lucrative gaming company that has quickly positioned itself as one of the leading global game developers of free-to-play word games, the company is quite excited to work with the startup”. Following the acquisition of the startup, MTG noticed a significant increase in the value of their shares in the share market which is quite appreciable.
Furthermore, before the acquisition of PlaySimple MTG also acquired two game development companies Hutch and Ninja Kiwi. The acquired companies own 40% shares of MTG.