Tag: Nazara Technologies

Nazara Technologies looking at profitable game studios for acquisitions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gaming and sports media platform Nazara Technologies Ltd is looking at profitable game studios for acquisitions with a revenue of ₹100-250 crore and a margin of 15-20%. “We are looking at businesses or studios that are at least ₹100-250 crore in revenues with EBITDA margin over 15-20%,” Nitish Mittersain, Joint MD and CEO, Nazara Technologies said.

The company has set aside about $100 million, for mergers and acquisitions in markets like India, Europe and North America. “Hopefully in the coming quarters – Q1FY25 or Q2FY25 we should be able to close some deals,” he said.

The company is specifically focused on gaming studios similar to the WildWorks acquisition that it had done in 2023. Nazara Technologies had acquired 100% of US-based children’s interactive entertainment company WildWorks and its IP from existing shareholders in an all-cash transaction.

Nazara Technologies operates across three business segments – Gaming, E-sports and Ad Tech. Gaming (Kiddopia + Real money gaming) contributed to 36% of revenue and 56% of EBITDA in the 9M ending December 2024 and E-sports contributed to 55% of revenues and 38% of EBITDA.

On December 20, 2023, Nazara Technologies announced partnerships to publish five innovative games in India, which include ‘Gravity Shooter’ – 2D action game; ‘World Cricket League – 3D multiplayer cricket experience; ‘Hacked – Password Puzzle game; ‘Laser Tanks’ and ‘Paperly’.

Also Read | Nazara Tech’s Nodwin Gaming to acquire Ninja Global to expand business in Turkey and Middle East

Nazara Technologies is currently seeking further clarity regarding Real Money Gaming.

The Classic Rummy business has shown signs of improvement but might incur a minor loss in the fourth quarter.

In the third quarter of FY24 compared to the same period last year the company reported an increase in revenue by 1.8% to ₹320.4 crore from ₹314.8 crore, increased EBITDA to ₹37.7 crore from ₹30.5 crore, improved EBITDA percentage to 11.8% from 9.7% and profit after tax (PAT) amounted to ₹25.7 crore compared to ₹19.8 crore. Other income also surged to ₹17.9 crore from ₹11.5 crore YoY.

The current market capitalisation of the company is ₹4,958.79 crore.

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Nazara Tech pledges ₹830 crore to propel global expansion via M&As in next two years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Tech on Wednesday, March 13 said it has pledged ₹830 crore, or $100 million, to propel global expansion via strategic merger and acquisitions in the next 24 months.

“Following a recent successful fundraise that garnered ₹760 crore via a preferential allotment that attracted marquee investors such as Nikhil Kamath, ICICI Prudential MF and Plutus Wealth Management among others, Nazara is poised for significant expansion in the coming years,” it said.

The company said it is on a quest to identify the burgeoning opportunities within esports, gaming and adtech arenas with a particular focus on established gaming IPs, studios and also those advancing in technologies such as virtual reality, AI and web3.

“Nazara has seen significant success in its ‘acquire and scale’ strategy over the last few years as can be seen by the post-acquisition growth in Kiddopia, Nodwin Gaming and Sportskeeda, among others,” said Nitish Mittersain, Jt. MD and CEO of Nazara Technologies.

He said the recent pledge will further boost the company’s opportunities. “We are particularly focused on investing in and acquiring gaming studios globally with a specific focus on India’s 500 million gamers and the large North American market,” he added.

Nazara Tech shares were trading 4% lower at ₹645.2 apiece at 11.35 am on March 13. The stock has gained 25.3% in the past year.

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Nazara Tech’s Nodwin Gaming to acquire Ninja Global to expand business in Turkey and Middle East

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Technologies Ltd on Wednesday announced that its arm Nodwin Gaming International Pte Ltd has signed an agreement to acquire 100% stake in Ninja Global FZCO, which has assets in esports and gaming production in Turkey and the Middle East.

The acquisition of Ninja by Nodwin Gaming strengthens the company’s global emerging market delivery network, boosting its ability to provide solutions to publishers and brands in the Middle East and Turkey regions, Nazara Technologies said in a stock exchange filing.

This deal comes following the recent acquisition of Games Marketing Services company PublishMe in October.

Nodwin Gaming International Pte Ltd is a subsidiary of Nodwin Gaming Private Ltd and a material subsidiary of Nazara Technologies.

By acquiring Ninja Global, Nodwin Gaming has integrated crucial multi-language capabilities, transforming itself into a cost-competitive global delivery and production platform for gaming and esports, the company said.

This positions Nodwin Gaming to deliver world-class experiences across Asia, the Middle East, Turkey, Central Asia, Europe, and the United States Nazara Technologies said.

The acquisition also positions Nodwin Gaming to expand into Central Asia, tapping into the rapidly growing mobile games market, particularly in multiplayer and strategy games, driven by the tech-savvy youth population in the region.

“This strategic acquisition not only unlocks a plethora of new opportunities but also opens doors to numerous fresh possibilities for us as a leading gaming and esports media company,” Akshat Rathee, Co-Founder and Managing Director at Nodwin Gaming said.

Gokhan Kazar will oversee operations in the Middle East region for Nodwin Gaming. Doruk Demisar and Bilge Karageyik from PublishMe will collaborate to spearhead Turkish operations. Kazar and Doruk Demisar are the founders of Ninja Dubai.

Shares of Nazara Technologies were trading 0,72% lower at ₹844.8 apiece on BSE at 12:51 pm.

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Nazara Technologies Q3 Results | Net profit rises 45% to ₹29 crore, revenue up 2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gaming and sports media platform Nazara Technologies Ltd on Tuesday (February 6) reported a 45% year-on-year (YoY) increase in net profit at ₹29 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, Nazara Technologies posted a net profit of ₹20 crore, the company said in a regulatory filing. The company’s revenue from operations increased 1.8% to ₹320.4 crore against ₹314.8 crore in the corresponding period of the preceding fiscal.

#3QWithCNBCTV18 | Nazara Tech reports its #Q3 earnings 👇

➡️Net Profit up 45% at ₹29 cr vs ₹20 cr (YoY)
➡️Revenue up 1.8% at ₹320.4 cr vs ₹314.8 cr (YoY)
➡️EBITDA up 21% at ₹36.3 cr vs ₹30 cr (YoY)
➡️Margin at 11.3% vs 9.5% (YoY) pic.twitter.com/Zj4IBBbTOJ

— CNBC-TV18 (@CNBCTV18Live) February 6, 2024

At the operating level, EBITDA jumped 21% to ₹36.3 crore in the third quarter of this fiscal over ₹30 crore in the corresponding period in the previous fiscal. The EBITDA margin stood at 11.3% in the reporting quarter compared to 9.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Nazara Technologies has appointed Dhaval Sheth as head of strategic initiatives (founder’s office) and also designated him as a senior management personnel of the company, with effect from February 19, 2024. Before the appointment, he was the chief financial officer of Paper Boat Apps Private Ltd, a subsidiary of the company, since March 17, 2020.

The results came after the close of the market hours. Shares of Nazara Technologies Ltd ended at ₹864.70, up by ₹29.25, or 3.50%, on the BSE.

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Nazara subsidiary to acquire Comic Con India at a valuation of ₹55 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Technologies’ esports subsidiary NODWIN Gaming will acquire 100% of the shares of Comic Con India Pvt Ltd at a valuation of ₹55 crore through a combination of cash and share swap from the founders of Comic Con India — Jatin Varma and Karan Kalra. They will continue and remain to operate the business as part of NODWIN Gaming.

As much as ₹27.44 crore will be paid in cash, while the balance ₹27.55 crore will be paid by way of swap of shares (i.e by issuance of 172 equity shares of NODWIN against the equity shares of Comic Con) to the sellers.

The acquisition will be completed within 90 days, Nazara Tech said in a filing to the exchanges.

Post completion of the said acquisition, Comic Con will become the wholly owned subsidiary of NODWIN and step-down subsidiary of company, as per Nazara Tech.

“Integration of Comic Con India will amplify and diversify the offering of NODWIN to all opportunities that target the youth in India. With the continued intersection of Gaming/ Pop Culture/ esports into one interactive entertainment sector, Nodwin will add a strong and robust IP that is scalable both in India and Internationally. The quest for drawing millions of fans across the world will get another level up with Comic Con,” the company said.

As on March 31, 2023, Comic Con India’s turnover stood at ₹16.26 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nazara Technologies plans strategic expansion through core gaming, esports, and ad tech acquisitions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Technologies, a mobile gaming company and sports media platform based in Mumbai, is on the lookout for several acquisitions to enhance its presence in core gaming, eSports, and ad tech.

Nitish Mittersain, the Joint Managing Director and CEO of Nazara Technologies, shared the company’s plans with CNBC-TV18, emphasising the focus on profitable companies with substantial growth potential.

“In the past, we have successfully acquired businesses and accelerated their growth. We aim to replicate this success by considering companies with a minimum revenue of ₹100 crore, which are already profitable,” stated Mittersain. He anticipates closing one or two deals in the first quarter of the financial year 2025 based on the current deal pipeline.

One notable acquisition discussed by Mittersain is Kofluence, a leading platform with 600,000 influencers. Nazara Technologies envisions collaborating with Kofluence to create an outstanding game discovery platform promoted through social channels. This collaboration aligns with Nazara Publishing, a recently launched venture by Nazara Technologies.

Regarding the investment strategy, Nazara Technologies has received board approval to raise ₹250 crore through a preferential issue. Mittersain highlighted the significance of securing quality investors, with existing investors such as Nikhil Kamath, Plutus Wealth, and ICICI Prudential Mutual Fund subscribing to the latest tranche.

Mittersain emphasised that Nazara Technologies is a profitable, cash-flow-generating business. The raised funds will primarily be directed towards new mergers and acquisitions. “We have built a fantastic pipeline of opportunities over the last year, and we are diligently working on them. This capital infusion will fuel our faster growth in the coming years,” he explained.

The CEO mentioned that the ₹250 crore will bolster Nazara Technologies’ cash reserves, bringing the total to approximately ₹1,500 to ₹1,600 crore. This financial strength positions the company strategically for future endeavours and expansion.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nazara Technologies to raise ₹250 crore through preferential issue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Online sports platform Nazara Technologies Ltd on Wednesday (January 17) announced its plans to raise ₹250 crore through a preferential issue of equity shares. The decision was made during a meeting of the board of directors held on Wednesday.

The company aims to issue up to 28,66,474 fully paid-up equity shares, each with a face value of ₹4, at an issue price of ₹872.15 per share. The total amount to be raised through this preferential issue is capped at ₹250 crore. The funds are intended to fuel Nazara Technologies‘ growth and expansion initiatives.

Also, Nazara Technologies is set to acquire a 10.77% stake in Kofluence Tech Private Ltd through a share swap.

The company plans to acquire 13,875 equity shares, representing the said stake, from existing shareholders of Kofluence, including NKSquared, Pravan Holdings LLP, Sujeet Kumar, Aprameya Radhakrishna, Upsparks LLP, Green Lawns Corporate Advisors LLP, B.A. Advisors LLP, QED Innovation Labs LLP, Ritesh Ujjwal, and LV Angel Fund.

The total consideration for this acquisition is not to exceed ₹32.41 crore.

Further, Nazara Technologies has entered into definitive agreements to give effect to the share swap transaction. The company will issue up to 3,71,637 fully paid-up equity shares, with a face value of ₹4 each, at the same issue price of ₹872.15 per share.

The aggregate amount for this issuance stands at ₹32.41 crore. This issuance will be made to the existing shareholders of Kofluence as consideration for the acquisition of the 10.77% stake.

Nazara and Kofluence together will launch an influencer-led game discovery platform that will transform Nazara Technologies’ game distribution by becoming a powerful network for its gaming content on social media.

Influencers can showcase the games, create a buzz around new releases, and drive downloads and engagement. This model would allow Nazara to penetrate deeper into the market, reaching diverse audiences across different social media platforms.

Kofluence is India’s leading social media influencer led marketing tech platform with 600,000-plus registered creators across Instagram, YouTube, Facebook, LinkedIn and Twitter representing 20-plus languages.

Positioned as full stack marketing platform, Kofluence caters to performance metrics across creating awareness, interest, desire and action. Having worked with 500-plus marquee clients across more than 20 sectors, Kofluence has helped brands unlock value through social media creators.

Shares of Nazara Technologies Ltd ended at ₹950, down by ₹16.95, or 1.75%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nazara Technologies gains 5% on partnerships with four Indian gaming studios

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Technologies shares gained 5% after the company announced its partnerships with four Indian gaming studios to publish five games.

In a stock exchange filing, Nazara Technologies stated that it has entered into partnerships with four distinguished Indian game studios, in line with promoting the ‘Make in India’ vision in the gaming industry. This initiative is part of the company’s new publishing division, which was launched recently.

As part of the partnerships, Nazara Technologies will publish five innovative games bringing in unique gaming experiences and robust support to Indian game developers. The publishing division of Nazara Tech is laced with innovative artificial intelligence (AI) driven tools from the new Nazara SDK, which will promote the growth and development of game creators, the company said.

The five games selected for publication include the 2D action game ‘Gravity Shooter’ created by Smash Head Studios, a 3D multiplayer cricket game called ‘World Cricket League’ developed by Wandermind Labs, a puzzle game named ‘Hacked: Password Puzzle’ by Pixcell Play, and two games produced by ATG Studios – ‘Laser Tanks’ and ‘Paperly’.

The publishing division of the diversified gaming and sports media firm will also offer overall support besides financial investment, including mentorship, user acquisition, and live operations expertise.

“With substantial funds allocated for publishing, Nazara aims to publish 20 games within the next 12 to 18 months, investing between ₹1 crore to ₹3 crore per game,” the company said in release.

Shares of Nazara Technologies were trading 4.13% higher at ₹911.05 apiece on BSE at 1:14PM.

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Nazara says there will be new gaming IPs in the next six months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based Nazara Technologies is looking at more acquisitions to beef up its gaming and e-sports business, which together contributed over 86% of its total revenue as of the financial year ending March 2023.

“We have built a strong pipeline, especially in core gaming studio IPs, eSports space and perhaps a little bit in Adtech as well. We are looking at all these opportunities and hope to conclude some transactions in the next couple of quarters,” Nitish Mittersain, Joint MD & CEO of Nazara Technologies.

The recent imposition of goods and services tax (GST) on gaming companies spooked many of the players in the sector.

However, for Nazara, real money gaming, which includes Classic Rummy, made up 4% of its revenue. The rest of this segment (which had a revenue of over ₹400 crore in FY23) was from the gamified education platform for kids, Kiddopia, among others.

The e-sports vertical includes Nodwin, PublishME in the Turkey/MENA market, and Sportskeeda and Pro Football Network.

The company’s strategy has been to buy out or invest in games.

“Much of the capital will be used for driving additional M&A. Nazara has a strategy of acquire and grow, which has worked very well and we are surely going to double down on that,” he said.

Mittersain also believes that the number of gamers in the country will go up to 750 million by 2027 from the current 500 million.

“We have about 500 million gamers today, which are expected to grow to 750 million gamers by 2027. Gamers are spending today, 100 minutes on average a day playing games, which is much more than time spent on OTT and TV etc,” he said.

Nazara Technologies is a small-cap company with a market capitalisation of ₹5,876.72 crore, operating within the services sector.

For more, watch the accompanying video

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nazara Technologies launches publishing platform for game developers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nazara Technologies has introduced a new game publishing division that will launch high-quality games for the Indian and global markets. The online gaming major said it will invest a minimum of ₹1 crore per game and aims to launch up to 20 games over the next 18 months as part of its “Nazara Publishing” vertical.

Nazara will collaborate with several Indian and global developers to adapt and introduce these games to the extensive gaming community in India, as well as publish games created by Indian developers worldwide, a statement said. It has also introduced a dedicated website for game developers interested in partnering with Nazara to publish games across platforms, including mobile, web3, VR, and PC.

The firm will also provide developers with support on game design, localisation, data analytics capabilities, beta testing and quality assurance, enhanced monetisation and strong distribution through smart user acquisition spends and platform partnerships.

“Nazara Publishing is poised to revolutionise India’s gaming landscape, aiming to become the country’s premier game publishing platform. We are dedicated to nurturing both Indian and global game developers, providing resources, expertise, and a robust network to bring top-tier gaming experiences to India’s vast audience. With a special focus on supporting Indian developers, Nazara sees a significant opportunity in the Make-in-India initiative, and as part of this initiative, we will also promote Indian game developers globally,” said Nitish Mittersain, CEO and Joint MD, Nazara Technologies.

In September, Nazara Tech’s board approved an issue of equity shares with a face value of ₹4 each to raise up to ₹410 crore from SBI Mutual Fund. Earlier this month, Nodwin Gaming’s Singapore arm acquired a 100 percent stake in gaming marketing agency PublishME for $2 million from its existing shareholders Nazara Technologies and Ozgur Ozalp.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow