Gaming company Nazara raises Rs 900 crore, increases stake in Sportskeeda to 91%

Mumbai-based gaming and esports company Nazara Technologies announced that its board has approved a preferential equity issue to raise Rs 900 crore, pending shareholder and regulatory approvals.

The company will use the capital to fuel strategic acquisitions, fund business expansion, and enhance its ability to seize new growth opportunities.

The development comes shortly after the company acquired a 47.7% stake in Moonshine Technology, the owner of PokerBaazi, for Rs 832 crore through a secondary transaction.

Who are the investors?

Mumbai-based gaming and esports company Nazara Technologies announced that its board has approved a preferential equity issue to raise Rs 900 crore, pending shareholder and regulatory approvals.

The company will use the capital to fuel strategic acquisitions, fund business expansion, and enhance its ability to seize new growth opportunities.

The development comes shortly after the company acquired a 47.7% stake in Moonshine Technology, the owner of PokerBaazi, for Rs 832 crore through a secondary transaction.

Who are the investors?

The preferential equity issue amounting to Rs 900 crores will be placed with marquee investors such as SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun and Siddharth Sacheti, Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments and Aamara Capital.

These shares will be subject to SEBI regulations and lock-in requirements as per Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, the company said.

Acquiring more stake in Sportskeeda

Nazara also acquired an additional 19.35% stake in Absolute Sports Pvt. Ltd., the parent company of Sportskeeda, for Rs 145.5 crore, with 50% of the consideration paid in cash and the remaining amount in stock.

With this, Nazara now holds a 91% ownership stake in Absolute Sports.

Nazara's acquisition spree

Over the past few months, Nazara Technologies has been on a buying spree, strategically acquiring companies to bolster its global presence and strengthen its position in the domestic market.

Last week, the Nitish Mittersain-led company announced the acquisition of a 15.86% stake in GetStan Technologies Pte. Ltd (STAN), an esports community platform, for Rs 18.4 crore in an all-cash deal.

Late last month, Nazara also announced the completion of a 100% stake in UK-based Fusebox Games in a deal valued at Rs 230 crore, further expanding its portfolio.

The Mumbai-based company's subsidiary, Absolute Sports, acquired assets from DeltiasGaming.com in the same month.

Additionally, in July, Nazara acquired an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its founders, Anupam and Anshu Dhanuka, for Rs 300 crore.

These continued acquisitions made India's Nazara the 8th largest global gaming acquirer, according to the Drake Star Partners' Global Gaming Report for the second quarter of 2024.

Leadership comments

Nitish Mittersain, CEO & Jt MD of Nazara Technologies Limited, said, “Nazara has demonstrated its ability to attract top-tier investors who believe in our long-term vision of establishing India’s first globally respected gaming powerhouse. This Rs 900 crores fundraise will be instrumental in accelerating our growth across key segments."

"Additionally, increasing our stake to 91% in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape. The growth of Absolute Sports, from its early days as a startup to becoming a global media player, underscores our commitment to supporting innovative teams that consistently deliver transformational growth," Mittersain added.