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Nazara Technologies Announces INR 196 Cr Investment in Gaming, EdTech, and Kids Entertainment

Nazara Technologies, a leading name in India’s gaming and entertainment sector, is continuing its aggressive acquisition strategy. In a move to solidify its leadership in the rapidly growing gaming and entertainment industries, the company has announced a series of investments totaling INR 196 Crore across five key businesses. These investments are part of Nazara’s strategy to expand its portfolio, enhance its capabilities, and drive profitable growth in diverse sectors such as esports, adtech, kids’ entertainment, and edtech.
Nazara Technologies investment strategy
Quick Summary
  • Nazara Technologies has announced an investment of INR 196 Crore in five key companies, strengthening its position in the gaming, entertainment, and edtech sectors.
  • The investments include INR 64 Crore in esports subsidiary Nodwin, INR 69 Crore to acquire full ownership of Sportskeeda, INR 15 Crore in adtech firm Datawrkz, INR 43.7 Crore for a 60% stake in kids’ play center chain Funky Monkeys, and INR 4.2 Crore for a stake in AI-powered edtech platform Learntube.ai.
  • These moves are part of Nazara’s broader strategy to diversify its portfolio and drive growth in emerging technologies and industries.

Key Investments by Nazara Technologies

  1. Investment in Nodwin: INR 64 Cr Nazara Technologies is set to invest INR 64 Crore in Nodwin Gaming, its esports subsidiary. This investment will be made by subscribing to optionally convertible preference shares, enabling the company to support Nodwin’s growth and bolster its intellectual properties. Nodwin is one of the major revenue drivers for Nazara, and the funding will fuel its expansion in the esports domain, which has seen exponential growth in recent years. This move aligns with Nazara’s vision to strengthen its gaming portfolio and its presence in the esports ecosystem.

  2. Acquisition of Full Ownership in Sportskeeda: INR 69 Cr Nazara is also increasing its stake in Sportskeeda, a popular global gaming and sports media platform. The company will invest INR 69 Crore to purchase shares arising from the exercise of employee stock options (ESOPs). Following this transaction, Nazara will own 100% of Absolute Sports, the parent company of Sportskeeda, making it a fully owned subsidiary. This acquisition solidifies Nazara’s foothold in the sports and gaming media landscape, enhancing its digital portfolio.

  3. Investment in Datawrkz: INR 15 Cr In a move to boost its presence in the adtech space, Nazara will invest INR 15 Crore in Datawrkz, an adtech subsidiary. The investment will be made through the subscription of compulsorily convertible cumulative preference shares (CCPS). Nazara first acquired a 33% stake in Datawrkz in 2022, and this additional investment will help further develop the adtech capabilities of the subsidiary, reinforcing its strategic importance in the digital marketing ecosystem.

  4. Acquisition of Stake in Funky Monkeys: INR 43.7 Cr Expanding its interests beyond digital media, Nazara is acquiring a 60% stake in Funky Monkeys Play Centers, an indoor play centre chain for kids. Founded in 2012 by Binita Putcha and Sanjay Ghadiali, Funky Monkeys operates 11 centres across India and is a leader in the indoor kids’ play centre segment. With this acquisition, Nazara aims to leverage its digital intellectual properties, such as Kiddopia, to create synergies that will enhance the experience for children and families. The INR 43.7 Crore investment will enable Nazara to tap into the growing demand for physical and digital entertainment experiences for kids.

  5. Investment in Learntube.ai: INR 4.2 Cr Nazara is also making its first foray into AI-powered education with an investment of INR 4.2 Crore for a 4.7% stake in Learntube.ai, an edtech platform that uses AI to deliver personalized learning experiences. Learntube, formerly known as CareerNinja, integrates gamification with education to make learning more engaging and interactive. This investment is part of Nazara’s broader strategy to diversify its portfolio, focusing on emerging technologies such as artificial intelligence. Nazara’s CEO, Nitish Mittersain, highlighted that this investment marks the company’s first AI investment, which will play a key role in building its diversified platform.

Nazara's Strategic Growth Plans

This announcement follows closely after Nazara raised INR 855 Crore ($101.3 Million) in a private placement round on November 27. The funds from this round were sourced from a range of investors, including SBI Mutual Fund, Caratlane founder Mithun Sacheti, and Aamara Capital, among others. The capital infusion will be used to support strategic acquisitions, fund business expansion, and enhance the company’s ability to seize new growth opportunities.

In addition to these investments, Nazara has made several acquisitions in 2024, including stakes in Pokerbaazi, Paperboat, STAN, Fusebox, Ninja Global FZCO, Freaks 4U, and Circle of Games. These strategic moves highlight Nazara’s commitment to building the largest diversified gaming and entertainment platform in India.

Financial Outlook

On the financial front, Nazara Technologies reported a consolidated net profit of INR 16.24 Crore for the September quarter of FY25, a 33% decline from INR 24.18 Crore in the same period last year. Despite the dip in profits, the company is confident that these investments and acquisitions will help fuel its growth in the coming quarters, particularly in high-growth areas such as esports, gaming, and AI-driven education.
By focusing on high-growth sectors and expanding its digital and physical entertainment reach, Nazara Technologies is undoubtedly positioning itself as a dominant force in the gaming, entertainment, and edtech industries. This article outlines the company’s strategic investments, which will likely drive significant growth in the coming years.

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