Microsoft (MSFT) plans to fund India’s Zupee platform – October 7, 2022


Microsoft (MSFT Free Report) is planning an investment in India-based gaming platform Zupee, according to a TechCrunch report. The tech giant is reportedly in talks to potentially lead a $100m+ funding round for New Delhi-based Zupee, the latest in a series of bets by the Windows maker to expand its cloud business in major markets. strangers.

Zupee is a cloud-based casual gaming platform with over 70 million downloads. The company completed a $102 million Series B funding round, which brought the skill-based online gaming startup’s total fund to $121 million at a $600 million valuation.

Zupee’s gaming platform offers casual board games, such as ludo, carrom, snakes and ladders, etc. If the deal were to go through, it could mean integrating Microsoft’s Azure cloud service with Zupee.

The two companies have not reached an agreement and there is a reasonable chance that the deal will not materialize, the sources have warned. The point of contention for Microsoft seems to be Zupee’s paid service, which can also be seen as gambling.

Microsoft’s expansion in India keeps its promises

The business model of this Zacks Tier 3 (Hold) company, which relies on partners building additional services on top of its cloud platform, Azure, has recorded total revenues of approximately $10 billion in India over the past five years. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

According to IDC’s latest report, India’s public cloud services market is expected to reach $13.5 billion by 2026, growing at a CAGR of 24% between 2021 and 2026. Microsoft, which has lost 26.7% since the beginning of the year, remains well placed to gain the confidence of short-term investors thanks to its growing presence in this promising market.

Microsoft is competing with the likes of Amazonit is (AMZN Free report) Amazon Web Services (AWS) and Alphabet (GOOGL Free Report) owned Google Cloud in India.

The news comes months after Microsoft announced that it is setting up its largest data center region in India in Hyderabad at an investment of over INR 15,000 crore over a 15-year period. The proposed Hyderabad data center region will be Microsoft’s fourth in the country after Mumbai, Pune and Chennai.

That makes Microsoft’s data center investment the second-largest foreign direct investment in Telangana after AWS’ $2.77 billion FDI in its second-largest Asia-Pacific data center region in India. AWS was chosen by Prasar Bharati News Services in India to host and scale their digital news website — NewsOnAir — and daily magazine in India and around the world.

AWS has two data center regions in Mumbai and Hyderabad. Similarly, last year, Google Cloud launched its second cloud region in Delhi-NCR to serve customers in India and Asia-Pacific. Google’s first cloud region in India was established in Mumbai in 2017.

Microsoft’s Activision deal sees no respite

Microsoft plans to acquire ActivisionBlizzard (ATVI Free Report) for $68.7 billion, but is currently the subject of antitrust investigations in many countries around the world, including the United Kingdom and the United States. Activision recently launched Monitor 2, the sequel to the popular team-based shooter from Blizzard Entertainment. Activision’s expanding games portfolio is expected to help the company’s revenue growth this holiday season.

Last month, the UK Competition and Markets Authority said the acquisition could significantly harm competition and entered the second phase of its investigation, which will be finalized by March 1, 2023.

The U.S. Federal Trade Commission has also launched an investigation into Microsoft’s biggest acquisition, but has yet to announce its decision.

Meanwhile, Saudi Arabia became the first country to approve the deal in late August, followed by Brazil, which has just announced its decision.


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