Before the passage of the Online Gaming Promotion and Regulation Bill, several billionaires and major investors sold their shares in online gaming companies such as Dream11, MPL, and Winzo.
The online gaming industry in India has grown rapidly in recent years, reaching a valuation of approximately ₹20,000 crore in 2023. However, due to concerns over gambling and real-money gaming, there was a growing need for regulation. To address this, the government drafted the Online Gaming Promotion and Regulation Bill in 2022–2023, which aims to regulate gaming through licensing, age restrictions, and a 28% GST.
During discussions about the bill, stricter compliance regulations were proposed, raising concerns about their impact on the profitability and growth of gaming companies. As a result, major investors began reducing their investments starting from the third quarter of 2023.
In this context, several prominent Indian investors started selling their stakes in online gaming companies, including:
● Ranjit Rawal (Indian businessman and investor) reduced his investment in MPL (Mobile Premier League) and sold shares due to regulatory uncertainty. MPL was valued at $8 billion in 2022.
● Kiran Mazumdar-Shaw (Indian biotech billionaire) scaled back investments in U.S.-based gaming startups, including several connected to the Indian market.
● Mukesh Ambani’s Reliance Jupiter adopted a cautious approach to gaming investments and reportedly reduced stakes in online gaming companies.
● Rakesh Jhunjhunwala (1958–2022), through his family office Richa Investments, had made significant investments in Nazara Technologies, an Indian online gaming and entertainment company, in 2021. Nazara’s valuation reached $1 billion in 2021.
Rachita and her Son sold approximately 2.5 lakh shares of Nazara Technologies in October–November 2023 through open market transactions. they saved ₹334 crore from the ‘timely exit. Nazara’s share price fell by up to 40% in 2023.
● Avinash Bhandari reduced his investment in MPL by 20% and sold 50,000 shares of Nazara in 2023.
● Vinod Khosla (Indian-American venture capitalist) sold 15% of his investment in MPL and reduced his holdings in Winzo in 2023, generating approximately $50 million (₹400 crore) from the sale.
● Tiger Global Management (U.S.-based hedge fund) reduced its investments in Nazara and MPL, selling 10–20% of its shares in 2023, amounting to roughly ₹100 crore.
● Sequoia Capital India scaled back its holdings in Winzo and Games24x7, selling approximately 5–10% of its stakes.
Following the passage of the Online Gaming Promotion and Regulation Bill, social media platforms have seen discussions and questions raised about the timing of these billionaires and investors reducing or exiting their investments in online gaming platforms.