Sweden’s Stillfront to mark India entry with purchase of Teen Patti developer

Stillfront Group AB, a Stockholm-based operator of gaming studios that focus on free-to-play content, has entered into an agreement to fully acquire India’s Moonfrog Labs Pvt Ltd.

Moonfrog, which is headquartered in Bengaluru, has developed several gaming properties including Teen Patti Gold, Ludo Club, Baahubali: The Game, and Alia Bhatt: Star Life. According to VCCEdge, investors in the studio prior to its acquisition include Sequoia and Tiger Global.

The transaction, which will mark Stillfront’s entry into the Indian market, will take place in four tranches -- the first will see it pick up a 91% stake in Moonfrog for a cash transaction of $90 million (around Rs 656.16 crore) on a cash and debt-free basis.

The other three tranches for the remaining 9% will take place between this year and 2023, and will be linked to Moonfrog’s performance on an annual EBITDA (earnings before interest, taxes, depreciation and amortisation) basis, Stillfront said in a statement. 

Moonfrog was set up in 2013 by Tanay Tayal, Ankit Jain, Kumar Puspesh, Oliver Jones and Dimpalkumar Maisuriya. According to VCCEdge, the company reported consolidated net sales of Rs 131 crore and net profit of Rs 38 crore for the 2018-19 financial year.

Per Stillfront’s statement, Moonfrog also reported unaudited approximate net revenues of $21 million and adjusted EBITDA of around $12 million between January and September 2020.

In March 2015, Moonfrog raised $15 million (Rs 92 crore) from Tiger Global and Sequoia Capital. Prior to that, it raised $1 million from Sequoia in 2014.