M&A: The art of the deal

The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems and what that means for industry.

CoinDCX acquires MENA based BitOasis

CoinDCX, the largest crypto exchange in India, announced the acquisition of BitOasis, the Middle East and North Africa’s leading virtual assets trading platform boasting the highest trading volume in Emirati Dirhams. CoinDCX had previously made a strategic investment in BitOasis in August 2023.

Sumit Gupta, Co-Founder of CoinDCX, said, “Our expansion strategy begins with the MENA region, capitalizing on its mature market and the population’s keen interest in crypto investment.”

Ola Doudin, Co-Founder & CEO of BitOasis, said, “Since the start of BitOasis, trust and regulatory compliance have been a key pillar in our mission to drive crypto adoption across MENA. This is a common pillar we share with CoinDCX along with our unwavering commitment to customer-centricity that has been equally vital for sustainable success. We take pride in our recent regulatory milestones, being amongst the first companies to register and become a reporting entity to FIU, the reinstatement of our MVP Operational license under VARA, and securing a license from the Central Bank of Bahrain, reinforcing our regional presence.”

Why It Matters

The two market leaders joining forces marks a first-of-its-kind, transformative deal in the MENA region. Combined with the company’s newly acquired licence in the Kingdom of Bahrain and the recent reopening of its platform in Dubai, the acquisition will further empower BitOasis to strengthen and expand its presence across the MENA region as a leading player in the virtual assets ecosystem, licensed and regulated in multiple markets.

Established in 2018, CoinDCX boasts a robust user base of over 15 million. Offering access to over 500+ crypto assets and facilitating average quarterly trading volumes exceeding USD 840 Million in spot in 2024, CoinDCX has been instrumental in driving crypto adoption across India.

Founded in 2016 by Ola Doudin, Tarek Kaylani and Daniel Robenek, BitOasis has emerged as the go-to platform for retail, institutional and high-net-worth individuals across the GCC and the broader MENA region to buy, sell and hold over 60 tokens with fiat currencies such as AED, SAR, and USD. Since its inception, the company has processed over $6 billion in trading volume and raised more than $40 million dollars in funding from leading regional and global investors.

Nazara Technologies Limited Acquires Paper Boat Apps Pvt. Ltd

Nazara Technologies Limited (BSE: Nazara), announced the acquisition of additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its promoters Anupam and Anshu Dhanuka for a sum of INR 300 crores to be paid in cash in tranches to take its ownership in PBA to 100%. Nazara will also consider merging Paper Boat Apps into the company at the appropriate time to bring home one of the world’s most popular kids gamified learning IP ‘Kiddopia’.

Paper Boat Apps is the developer and publisher of popular children’s digital gamified learning app ‘Kiddopia’ which is the #3 grossing app for children between 2-8 years of age in the United States of America.

Paper Boat Apps posted a consolidated revenue of INR 219.4 Crores and an EBITDA of INR 56.1 Crores in FY24, with a net cash balance of INR 155.74 Crores as of March 2024.

Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, said, “At Nazara, we believe an IP such as Kiddopia has immense potential that can be unlocked through several new initiatives and acquiring full ownership underscores our commitment to intensifying our efforts in the gamified learning sector.”

He added, “Nazara is quickly becoming the go-to platform for entrepreneurs in the gaming, sports, and entertainment sectors globally to access opportunities to scale up and generate liquidity for themselves along the way, as exemplified by this transaction.”

Anupam Dhanuka, Promoter of Paper Boat Apps, remarked, “It has been an incredible journey developing Kiddopia into a beloved app for children and parents worldwide. Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara. We believe that Kiddopia has significant potential for future growth, and Nazara is well-positioned to elevate it to the next level. We wish Nazara and the entire Kiddopia team the best of luck in their future endeavours.”

Why It Matters

This step will allow Nazara to benefit from healthy cash flows that can be reinvested for organic as well as inorganic growth. Since Nazara’s acquisition in 2019 of a 50.91% stake in Paper Boat Apps, Kiddopia has scaled up significantly and become a much-loved franchise among children globally.

Nazara aims to execute a multi-pronged strategy to drive growth and expansion of the Kiddopia franchise through IP licensing and integration, global market expansion, deeper synergies within its network, and additional revenue streams including merchandising, video, and advertising revenues, in addition to the current model of subscription revenues.

Thyrocare Acquires Polo Labs Private Limited

Thyrocare, a diagnostic and preventive healthcare service provider in India, has entered into a Business Transfer Agreement with Polo Labs Private Limited to acquire their pathology diagnostic business. This strategic acquisition expands Thyrocare’s Footprints into the Northern part of India, further solidifying its position as a dominant player in the Indian diagnostic industry.

Polo Labs Private Limited, based out of Punjab, is a pathology diagnostic company with 14 laboratories across Punjab, Haryana, and Himachal Pradesh. Currently, Polo Labs serves a substantial client base and has a significant market presence in Northern India, contributing to the region’s healthcare infrastructure.

Rahul Guha, MD & CEO of Thyrocare Technologies Ltd. & President of API Holdings, stated, “This strategic acquisition will enhance our diagnostic capabilities and service offerings, leveraging Polo Labs’ existing widespread network in North India. We are committed to a seamless integration and look forward to the growth and innovation this acquisition will bring. Together, we will continue to provide exceptional diagnostic services to a broader client base.”

Why It Matters

The acquisition of Polo Labs aligns seamlessly with Thyrocare’s overall business strategy in the healthcare sector, which focuses on enhancing diagnostic capabilities and extending its reach across India. By integrating Polo Labs’ existing network with Thyrocare’s advanced diagnostic infrastructure, the company aims to deliver improved service delivery, faster turnaround times, and unmatched patient convenience.

Riveron Acquires Yantra

Riveron, a business advisory firm backed by Kohlberg & Company, announced its acquisition of Yantra, a technology and advisory services provider with a broad range of expertise to address the pressing needs of technology-enabled CFOs.

Sam Shaw, CEO of Riveron, highlighted the strategic aspect behind the acquisition, saying, “Forward-looking organizations need technology solutions that will adapt and scale regardless of the business environment. With Yantra, we now have a global team to help Riveron serve the Office of the CFO and Private Equity firms to elevate performance.”

Founded in 2009 by US entrepreneur of Indian origin Vikram Bhandari, Yantra has around 300 employees across the United States, Canada, India, and the Philippines. Bhandari will join Riveron as its Chief Technology and Innovation Officer, serving clients in myriad arenas, including bringing a fresh perspective on the practical impact of AI for CFOs. With the acquisition, Riveron significantly expands its team, increasing its global headcount to over 1,000 dedicated professionals.

Vikram Bhandari speaking on the acquisition shared, “Over the years, Yantra has helped clients in adopting digital transformation across diverse technology and business landscapes. Now, as part of Riveron, we are excited to play a pivotal role in our shared commitment to growth and delivering next-generation technology to our clients.”

Terms of the transaction were not disclosed. Canaccord Genuity served as financial advisor to Riveron. Ropes & Gray served as legal advisor to Riveron. Telegraph Hill Advisors served as financial advisor to Yantra, and Sklar Kirsh LLP served as legal advisor to Yantra.

Why It Matters

The acquisition makes Riveron one of the largest NetSuite Alliance Partners globally, offering clients holistic solutions to enhance value. Yantra also brings significant expertise in data science and analytics, Artificial Intelligence (AI), Robotic Process Automation (RPA), and platform integrations.

C5i Acquires Analytic Edge

AI and analytics company, C5i, has fully acquired Analytic Edge, a premier provider of AI-based Marketing Analytics solutions. Founded in 2015, Analytic Edge (AE) is a world-leading specialist in AI & technology-enabled analytics solutions for marketing and sales effectiveness with 185 associates worldwide. The company delivered US$~10 million annual revenue in FY24 and is poised to grow ahead of the industry growth rate in FY25. With headquarters based in Singapore and offices in India, US, Europe, Japan, and Brazil, AE boasts an impressive stable of global clients, including 4 of the top 15 Consumer Packaged goods companies in the world and leading global social media platforms. Analytic Edge combines the powerful capabilities of its Qube platform with consulting and services to provide best-in-class marketing optimization solutions to its clients.

Ashwin Mittal, Chairman and CEO of C5i, said, “At C5i, we work closely with our customers and partners to offer actionable insights and deliver sustainable business impact by combining human perspectives with the power of AI. We have found a striking similarity with Analytic Edge in our core values of customer obsession, innovation, trust, empowerment, and collaboration. Analytic Edge is the perfect strategic fit in completing our portfolio in the area of marketing spend optimization. They bring powerful AI and predictive capabilities with their platform and talent base. C5i has always believed in delivering superior outcomes to clients by combining IP and people capabilities and Analytic Edge has the same philosophy.”

Rahul Budhraja, CEO of Analytic Edge, said, “Analytic Edge shares with C5i strong mutual values, cultural and industry segment synergies, and a client-centric focus. C5i is an innovator in AI & analytics solutions, having built robust platforms with the Human-AI combination. Integration with C5i equips Analytic Edge with the scale, capabilities, customer reach, and R&D capabilities to continually advance the Analytic Edge Qube platform, adding new functionalities, innovative delivery, and revenue models. We are excited to be part of the C5i team and look forward to unlocking superior data-driven experiences for our customers.”

Why It Matters

Marketing expenditure is one of the largest investment areas for consumer-focused companies across various sectors, including CPG, technology, and e-commerce. Leading organizations strive to ensure effective allocation, continuous tracking, and analytics-based optimization of their marketing budgets, presenting a significant and growing business opportunity. Marketing mix optimization, pricing intelligence, and test and control mechanisms leverage the power of analytics, enhancing marketing budget allocation discipline and improving overall decision-making capabilities. This will distinguish leaders from laggards. The products and competencies that AE brings, combined with C5i’s deep domain strength, IP focus, and broader capabilities, will enable us to offer a significantly enhanced value proposition to customers.

As C5i stays on course to achieve an INR 1,000-crore turnover in the next financial year, this strategic move will additionally strengthen the company’s capabilities in globally scalable and integrated delivery of always-on marketing analytics, insights, and optimization. The acquisition supports a joint vision to be a global leader in Analytics & AI solutions in the end-to-end business value chain, including marketing, customer, omnichannel, and supply chain. Clients of both companies will benefit from combined superior end-to-end capabilities, including domain-oriented consulting, data engineering, data science, advanced analytics, cloud orchestration, generative AI, and other AI technologies.