Nazara Tech acquires 100% stake of Paper Boat Apps via additional Rs 300 crore investment

Mumbai-based gaming company Nazara Technologies today announced that it has acquired an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its promoters, Anupam and Anshu Dhanuka, for Rs 300 crore.

While the company will pay the amount in cash, the transaction brings Nazara's ownership in PBA to 100%.

What does Paper Boats Apps do?

Paper Boat Apps is the developer and publisher of the popular children’s digital gamified learning app Kiddopia, which is the #3 grossing app for children between 2 and 8 years of age in the United States of America.

The company posted a consolidated revenue of Rs 219.4 crore and an EBITDA of Rs 56.1 crore in FY24, with a net cash balance of Rs 155.74 crore as of March 2024.

“At Nazara, we believe an IP such as Kiddopia has immense potential that can be unlocked through several new initiatives and acquiring full ownership underscores our commitment to intensifying our efforts in the gamified learning sector," said Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies.

Merging Paper Boat Apps

Nazara said it will also consider merging Paper Boat Apps into the company at the appropriate time to bring home one of the world’s most popular kids gamified learning IP ‘Kiddopia’.

The merger will allow Nazara to benefit from healthy cash flows that can be reinvested for organic as well as inorganic growth, the release notes.

Nazara first acquired a 50.91% stake in Paper Boats Apps in 2019, and since then, Kiddopia has scaled up significantly and become a much-loved franchise among children globally.

“Nazara is quickly becoming the go-to platform for entrepreneurs in the gaming, sports, and entertainment sectors globally to access opportunities to scale up and generate liquidity for themselves along the way, as exemplified by this transaction," Mittersain added.

Driving growth and expansion

Nazara aims to execute a multi-pronged strategy to drive growth and expansion of the Kiddopia franchise through IP licensing and integration, global market expansion, deeper synergies within its network, and additional revenue streams, including merchandising, video, and advertising revenues, in addition to the current model of subscription revenues.

"It has been an incredible journey developing Kiddopia into a beloved app for children and parents worldwide. Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara," said Anupam Dhanuka, Promoter of Paper Boat Apps.

"We believe that Kiddopia has significant potential for future growth, and Nazara is well-positioned to elevate it to the next level. We wish Nazara and the entire Kiddopia team the best of luck in their future endeavours," Dhanuka added.