Games24x7 Acquires Stake in Wiseowl Securities
Online gaming company Games24x7 aims to secure a minority stake in Wiseowl Securities, which is the parent company of Butterfly Broking (TIQS), as revealed by regulatory documents obtained by Startup Superb. The board of Games24x7 has approved a special resolution for the acquisition of a 24% stake in Wiseowl Securities for Rs 9.1 crore, according to filings from the Registrar of Companies (RoC).
Additionally, Games24x7 has received board approval to provide a short-term loan of Rs 18 crore to Wiseowl Securities. This firm operates in the stock broking sector and is registered as a mutual fund distributor under the Association of Mutual Funds in India and the BSE. Its wholly owned subsidiary manages the Butterfly Broking platform, which offers access to both NSE and BSE, enabling clients to trade in equities, derivatives, commodities, and currency.
This development occurs while various real-money gaming (RMG) firms are seeking new opportunities amid a comprehensive ban. Many gaming platforms have either restructured their operations or diversified into related consumer internet sectors.
For instance, Dream Sports, which oversees Dream11, has ventured into wealth-tech with its Dream Money application. Similarly, WinZO has introduced products like ZO Gold, while Zupee has broadened its scope to include content and lifestyle-led sectors beyond its primary gaming services.
Games24x7’s potential investment in Wiseowl Securities signals a significant shift among gaming companies towards regulated financial services. As challenges persist in the RMG sector due to policy changes, entering the capital markets may present new revenue opportunities and diminish regulatory risks.
