Nazara Expands Gaming Portfolio with INR 196 Cr Investment Across Five Companies The raised amount is going to be invested in Funky Monkeys, Learntube.ai, and subsidiaries including Nodwin Gaming, Sportskeeda, and Datawrkz, bolstering gaming, education, and entertainment ecosystem for strategic growth.
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Online gaming platform Nazara Technologies has announced strategic investments of INR 196 crore across five companies, including both new ventures and existing subsidiaries, to fuel its growth in gaming and entertainment.
This comes on the heels of Nazara's recent INR 855 crore fundraising through preferential share allotment.
The new investments include an INR 43.7 crore acquisition of a 60% stake in Funky Monkeys, a provider of indoor soft play centers for children with 11 centers across India. This move aligns with Nazara's strategy to diversify its entertainment offerings.
The company has also invested INR 4.2 crore for a 4.7% stake in Learntube.ai, an AI-powered education platform catering to over 20 lakh learners with gamified and interactive learning experiences.
In addition to these acquisitions, Nazara has deepened its stake in existing subsidiaries with an INR 148 crore investment. This includes INR 64 crore in Nodwin Gaming via Optionally Convertible Preference Shares to support its expansion, enhance intellectual properties, and solidify its position in emerging markets. Notably, Nodwin recently acquired Trinity Gaming for INR 24 crore, further bolstering its esports portfolio.
Nazara also exercised Employee Stock Options (ESOPs) to acquire additional shares from Sportskeeda's management, investing INR 69 crore to make it a wholly owned subsidiary.
Furthermore, the company approved a INR 15 crore investment in Datawrkz through Compulsorily Convertible Cumulative Preference Shares, aiming to drive its growth.
"Nazara is committed to building the largest diversified gaming and entertainment platform out of India, and many of our initiatives announced today are geared towards propelling profitable growth in these strategic areas of our interest," said Nitish Mittersain, Joint MD and CEO, Nazara Technologies.
Despite these advancements, Nazara reported mixed financial results for Q2 FY25. Revenue from operations grew by 7.3% YoY to INR 318.94 crore, driven by a 9.3% rise in gaming revenue to INR 114.05 crore and a 5.7% increase in esports revenue to INR 181.76 crore. However, rising costs led to a 32.8% drop in profit, which fell to INR 16.24 crore.
