Is Nazara Technologies's growth strategy built to last or bound to bust?

Nazara Technologies , India's only listed gaming company, recently acquired Moonshine Technologies, known for its popular gaming app 'PokerBaazi'. This is the largest acquisition for the online gaming player, which has primarily scaled up by buying out its fellow competitors. While the 'acquisition as a growth strategy' has definitely helped Nazara grab a significant market share, its financials have been a mixed bag. Though topline numbers continue to impress, with revenues topping Rs 1,156 crore (as of TTM September 2024), profits have largely remained flat. Will PokerBaazi's acquisition change its fortunes? To find out, we will need to first find out whether past acquisitions have borne fruit for the online gaming giant. More acquisitions, more costs? While acquiring competitors certainly bolstered Nazara's revenue growth, thanks to scaling up companies like Kiddopia, Sportskeeda, NextWave Multimedia and NODWIN Gaming, profits grew at a snail's pace. This sluggish growth can be attributed to the high client acquisition costs that come with buying more companies. Thus, despite a 35 per cent annual revenue growth dur