Nazara Technologies has successfully raised Rs 855 crore (approximately $100 million) through a preferential issue, in which new and existing investors participated.
The diversified gaming and sports media firm had got the board’s approval for a preferential equity issue to raise Rs 900 crore in September. The funds allotment was approved by its board on 27 November.
The company stated in a stock exchange filing that the funds will be used to drive Nazara’s expansion in the gaming and sports media sectors. The BSE and NSE have granted in-principle approval for the allotment, with final approvals for listing and trading expected soon.
The fundraising round was led by SBI Innovative Opportunities Fund, a scheme of SBI Mutual Fund, which subscribed Rs 220 crore for over 23 lakh shares. Other significant investors include Junomoneta Finsol Private Limited and Think India Opportunities Master Fund LP, each contributing Rs 150 crore. Individual investors CaratLane co-founder Mithun Padam Sacheti and his brother Siddharth Sacheti, each invested Rs 75 crore.
Notable smaller investors included Cohesion MK Best Ideas Sub-Trust, Chartered Finance & Leasing Limited, and Discovery Global Opportunity (Mauritius) Ltd. As a result of this allotment, Nazara’s paid-up equity share capital has increased from Rs 30.62 crore to Rs 34.20 crore.
Moneycontrol reports that this is the second fundraise for Nazara Technologies in a year, following the Rs 760 crore raised from marquee investors such as Zerodha co-founder Nikhil Kamath, ICICI Prudential MF and SBI Mutual Fund in recent months.
In October 2021, the company had raised Rs 315 crore from a group of institutional investors, including Singapore sovereign wealth fund GIC-managed investment firm Gamnat Pte and Ahmedabad-based Plutus Wealth Management. Nazara Technologies went public in February 2021.
Nazara Technologies, one of the country’s oldest gaming firms, has been aggressively pursuing acquisitions to scale and expand its portfolio of businesses.
The company operates in three key sectors – gaming (World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy etc), e-sports (Nodwin Gaming), media (Sportskeeda), and advertising (Datawrkz).
In September, Nazara made its largest bet to date by announcing an investment of Rs 982 crore in Moonshine Technology, the parent firm of online poker platform PokerBaazi.
The firm also acquired UK-based gaming studio Fusebox Games for Rs 228 crore in an all-cash deal and purchased a 15.86% stake in esports community platform Stan for Rs 18.4 crore in cash through a secondary transaction from existing shareholders.
Nazara is also buying remaining stakes in its subsidiaries Paper Boat Apps, which owns the gamified learning app Kiddopia, and Nextwave Multimedia, a mobile-gaming studio, to take 100% ownership.
These deals are part of the company’s new operating model, implemented earlier this year, which aims to bring the core gaming business into the parent entity. This will increase the parent firm’s revenue and free cash flow, which can then be deployed for both organic and inorganic growth.
In an interview to Moneycontrol in May, founder Nitish Mittersain said he expects the core gaming business to become the largest revenue generator for the company over the next two or three years.
In its recent Q2 FY25 report, Nazara Technologies showed a 7.3 per cent increase in revenue to Rs 318.94 crore and a 10.85 per cent rise in profit to Rs 21.97 crore.
