Nazara Technologies, a leading name in the Indian gaming and sports media industry, has announced a significant fundraising round and a strategic acquisition, marking a major step in its growth journey.
Major Fundraise to Fuel Growth
Nazara’s board has approved a preferential equity issue to raise US$107.73 million (INR 900 crores). Subject to shareholder and regulatory approvals, the funds will be used to:
- Power Strategic Acquisitions: Nazara plans to acquire companies that align with its strategic growth objectives.
- Drive Business Expansion: The capital will also support the expansion of existing business segments, supporting Nazara’s expansion into new markets.
- Capitalize on New Opportunities: The capital infusion will enable Nazara to capitalize on emerging opportunities in the evolving gaming and sports media environment.
The investment comes from a group of prominent investors, including:
- 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
- Aamara Capital
This demonstrates strong confidence in Nazara’s vision and future prospects. The issued shares will comply with SEBI regulations, including lock-in periods.
Expanding Footprint in Sports Media: Increased Stake in Absolute Sports
Alongside the fundraising, Nazara has acquired an additional 19.35% stake in Absolute Sports Pvt. Ltd., the parent company of Sportskeeda, for US$17.85 million (INR 145.5 crores). This acquisition was structured with 50% of the payment in cash and the remaining 50% in stock.
Nazara now holds a controlling 91% ownership stake in Absolute Sports, solidifying its position as a leader in the sports media sector.
Sportskeeda, Absolute Sports’ flagship brand, has a global reach of millions of sports enthusiasts every month. It ranks among the top sports platforms in India and the U.S.
Absolute Sports has further broadened its portfolio through recent acquisitions:
- Pro Football Network (PFN): Expanding its reach within American football.
- SoapCentral: Adding entertainment content to its offerings.
- Deltia’s Gaming: Diversifying into the gaming community.
Leadership Perspective
Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, highlighted the significance of these developments:
“This US$107.73 million fundraising will play a key role in accelerating our growth… Furthermore, increasing our stake to 91% in Absolute Sports (Sportskeeda) strengthens our leadership in the sports media space. The growth of Absolute Sports… showcases our commitment to supporting innovative teams that consistently deliver transformative growth.”
Nitish Mittersain
These strategic moves by Nazara Technologies underscore its ambition to become a dominant force in the gaming and sports media industry, both in India and on the global stage.
