Nazara's stake in Nodwin Gaming to fall below 50% after internal fundraise

Nazara Technologies, a listed gaming and esports company, disclosed in a stock exchange filing that it will not participate in NODWIN's upcoming fundraise. 

While the company clarified that it is not divesting any existing equity, the refusal to infuse fresh capital will lead to a dilution of its holding below 50%, stripping it of majority ownership. As a result, NODWIN will transition from a subsidiary to an “associate company” status on Nazara’s books, subject to shareholder approval at an extraordinary general meeting (EGM) scheduled for August 13.

Despite the reclassification, Nazara will retain its position as NODWIN's largest shareholder.

Nazara's board has also approved the relinquishment of certain controlling and restrictive rights that it currently holds in NODWIN, including influence over key strategic decisions. The company said this move is aligned with its broader strategy of focusing resources and capital on its core gaming intellectual properties (IPs), rather than non-core segments like esports services.

Nazara last invested Rs 64 crore (approximately $7.5 million) in NODWIN in December 2024 to support the subsidiary’s expansion and IP development. It had originally acquired a majority 55% stake in NODWIN in 2018 through a cash-and-stock transaction, gradually increasing its investment over the years.

Founded in 2015 by Akshat Rathee and Gautam Virk, NODWIN Gaming has evolved into one of South Asia’s largest esports companies. It organises tournaments, manages gaming content production, conducts influencer marketing, and runs live esports events both in India and internationally.

Backed by marquee investors such as Krafton, JetSynthesys, Sony Group, and Innopark, NODWIN previously raised $28 million in May 2023 at a post-money valuation of $349 million. That round enabled the company to expand rapidly through both organic growth and strategic acquisitions.

In recent years, NODWIN has acquired AFK Gaming and Trinity Gaming in India, as well as companies in Germany and Turkey, to broaden its international reach. In October 2024, the company hosted the PUBG Mobile National Championship finals in Uzbekistan, hailed as the country’s largest esports event to date. It also produced multilingual broadcast content for the Esports World Cup in Riyadh, managing operations remotely from its Hyderabad studio.