The investment, executed through Nodwin Gaming International Pte. Ltd., a subsidiary of Nazara, includes a Convertible Note with a value of €3.6 million. The convertible note, if converted, would translate into 7,366 shares at a future date, with the exact shareholding percentage contingent on the terms and conditions outlined in the convertible note.
Convertible notes are commonly utilized by start-ups to secure early-stage capital. They involve lending money to a start-up with the intention of converting it into equity during subsequent financing rounds. This strategic move aligns with Nodwin Gaming’s broader plan to raise $28 million, as disclosed earlier this year, aiming to fuel expansion, incubate new intellectual properties (IPs), and venture into unexplored territories.
Nodwin Gaming, operating under Nazara’s umbrella, has actively pursued growth opportunities in gaming and esports. This includes strategic acquisitions such as a 51% stake in media tech start-up Branded, a 35% stake in gaming accessories brand Wings, and complete ownership of licensed merchandising D2C brand Planet Superheroes. These investments strategically position Nodwin Gaming as a critical player in the rapidly evolving gaming and esports ecosystem.
Nazara Technologies, the parent company, recently raised fresh capital of INR 510 Crore from investors like Nikhil Kamath of Zerodha and SBI Mutual Fund. With this infusion of funds, the gaming conglomerate is well-positioned to support gaming studios capable of developing top-tier games tailored to Indian and global audiences.
The collaboration between Nodwin Gaming and Freaks 4U Gaming brings together two industry leaders with complementary strengths. Nodwin Gaming has a dominant presence in mobile esports in emerging markets, while Freaks 4U Gaming is recognized as a powerhouse in PC gaming with a stronghold in developed markets.
This strategic alliance is expected to enhance the appeal of Nodwin Gaming and Freaks 4U Gaming to global consumer brands and game publishers. The joint venture aims to facilitate seamless operations across both emerging and developed markets, capitalizing on the collective expertise and resources of the two esports giants.
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