Gameskraft, a Bengaluru-based online gaming company, acquires land in Gurugram for ₹90 crore

Gameskraft Technologies Private Limited, a Bengaluru-based online gaming company, recently acquired a land parcel spanning 8.61 acres in Gurugram, Haryana, for ₹90 crore as per Propstack. The purchased property was identified as agricultural land, with the sale transaction officially registered on Mar 11, 2024. Documents further revealed that the company paid a stamp duty amounting to ₹6.3 crore for the acquisition. Gameskraft Technologies confirmed the purchase, stating it was part of their plans to establish an educational facility in line with their social initiatives. The company is known for operating various gaming brands including Rummyculture, Playship, and Pocket52.

Aside from this recent purchase, Gameskraft Technologies faced a challenge in 2022 when a GST intelligence unit issued a showcause notice alleging non-payment of ₹21000 crore in GST. The company contested this notice in the Karnataka High Court, which ultimately ruled in their favor, nullifying the showcause notice. However, the revenue intelligence unit of the GST department appealed this decision in the Supreme Court subsequently. In a separate transaction, the company acquired an office space in Bengaluru in 2021 for ₹129.99 crore.

The gaming industry in India has witnessed significant growth, with a substantial gaming community of 42.5 crore players, making India the second-largest gaming market globally after China. A report by EY titled ‘New Frontiers Navigating the Evolving Landscape for Online Gaming in India’ sheds light on the immense potential and evolving nature of the online gaming sector in the country, showcasing promising opportunities for companies like Gameskraft Technologies to thrive and expand their presence.The gaming sector in India displays immense potential for boosting Foreign Direct Investment (FDI) inflows, creating employment opportunities, and attracting investments across various industries. Additionally, it is poised to stimulate growth in ancillary sectors such as fintech, cloud services, data analytics, and cybersecurity. From FY20 to FY23, the online gaming segment in India witnessed a significant Compound Annual Growth Rate (CAGR) of 28%. Industry forecasts predict that it will reach a valuation of ₹33,243 crore by FY28, with a CAGR of 15%. Presently, the sector directly and indirectly employs approximately one lakh individuals, with projections indicating a growth to 250,000 job opportunities by 2025 according to the EY report.

During the 51st GST council meeting in August 2023, revisions were made to the GST regulations, specifying that ‘actionable claims’ provided by Real Money Gaming (RMG) platforms would be subject to a 28% tax on the full-face value of deposits. In response to these GST amendments, online gaming platforms are revamping their operational frameworks and re-assessing business strategies to ensure sustained operations and foster growth, as highlighted in the EY report. A study by KPMG emphasized that the COVID-19 pandemic acted as a pivotal moment for the surge in gaming consumption in India.

Furthermore, the KPMG report underscores that India predominantly functions as a mobile-first gaming market, where mobile phones and smartphones are the preferred devices among online gamers. This preference is attributed to factors like affordability in comparison to gaming consoles and the convenience they offer in terms of ‘anytime, anywhere’ usage. This shift in preference towards mobile devices reflects the evolving landscape of the gaming industry in India and signifies the importance of accessibility and flexibility in gaming experiences for users.

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Enos Deckow
11 April 2024 16:49

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