Passion Gaming founders reacquire shares from Rank Group
Co-founders of the rummy platform regain shares from Rank subsidiary Stride Investments, seven years after UK firm took 51% stake in the business
Bobby Garg and Priya Kumar, co-founders of India-based skill games company Passion Gaming, have acquired their shares back from Rank Group.
Garg and Kumar have paid an undisclosed amount to regain their shares and once again hold 100% ownership of the firm behind Rummy Passion.
The move comes after London-listed Rank Group said the tax burden in the nation had proved “challenging”.
Speaking to EGR, Rank Group COO Jon Martin said: “It has been huge fun working with Bobby and Priya, and the team at Passion Gaming in recent years.
“The business has made great progress during that time, but the tax change in India has meant that the economics of the business are considerably more challenging today.
“We decided that the optimum outcome for Rank’s shareholders was to sell our stake to the founders so that they can reshape the business model for the new fiscal circumstances for online rummy operators in India.”
Rank Group subsidiary Stride Gaming acquired 51% of Passion Gaming in December 2017.
According to Stride Gaming’s 2018 annual report, the firm had invested £2.5m in Passion Gaming and held the rights to further increase its stake in the group.
Stride initially retained the right to acquire the remaining 49% of Passion Gaming over the following three to five years, which it declined to exercise.
Rank ultimately did not elect to pursue the remaining 49% of the rummy operator and has now sanctioned the sale of the brand back to its founders.
According to a release from Passion Gaming, Rank had invested a total of $5m into the business to date.
As per Rank Group’s 2023 financial report, Passion Gaming saw year on year NGR rise 33% due to the relaxing of regulations in some Indian states.
Speaking about regaining his shares, Kumar said: “Achieving 100% ownership again is a rarity in a founder’s journey.
“This move empowers us to pursue our vision with full autonomy and capitalise on the immense potential we see in the Indian skill gaming market.”
However, despite the positivity from the co-founders, the pair also recognised the potential regulatory hurdles thanks to India’s tax regime.
The Goods and Services tax introduced into the Indian market in 2023 applied a 28% turnover tax to any services providing online gambling, casino and horseracing.
Garg added: “We hope the government seizes this opportunity to put India in the pole position globally in the gaming sector by fostering entrepreneurship in skill gaming and implementing fair taxation policies.
“We are optimistic that with our continued commitment to player protection the skill gaming sector can prosper.
“We keep our faith in the present progressive government which we feel can regulate skill gaming to differentiate permissible games from betting and gambling.”