Nazara Technologies, a prominent player in India’s gaming and sports media sector, has announced its largest fundraising initiative to date, aiming to raise ₹900 crore (approximately $108 million) through a preferential equity issue. This significant capital infusion is intended to accelerate the company’s growth trajectory, enabling strategic acquisitions, business expansion, and the ability to capitalize on emerging opportunities in the rapidly evolving gaming landscape.
The board of Nazara Technologies has approved the fundraising plan, which is contingent upon receiving necessary shareholder and regulatory approvals. The company is set to engage with a roster of high-profile investors, including SBI Mutual Fund, Think Investments, Discovery Investments, and Cohesion Investments, among others. These investments will be governed by the regulations set forth by the Securities and Exchange Board of India (SEBI), including lock-in requirements for the shares issued.
This fundraising effort comes at a time when the gaming industry in India is experiencing exponential growth, driven by increased smartphone penetration, internet accessibility, and a burgeoning interest in esports and online gaming platforms.
In conjunction with this fundraising announcement, Nazara Technologies has also acquired an additional 19.35% stake in Absolute Sports, the parent company of the popular sports platform Sportskeeda, for ₹145.5 crore (approximately $17.5 million). This acquisition was structured with 50% of the payment made in cash and the remaining amount in stock. With this latest investment, Nazara now holds a commanding 91% ownership stake in Absolute Sports, reinforcing its leadership position in the sports media domain.
Sportskeeda has emerged as a significant player in sports content creation, attracting millions of sports fans globally each month. The platform has gained substantial traction not only in India but also in international markets like the United States, where it ranks among the top sports platforms.
Absolute Sports has been actively expanding its portfolio by acquiring other notable entities such as Pro Football Network (PFN), SoapCentral, and Deltia’s Gaming. These strategic acquisitions are aimed at diversifying its offerings within the sports and entertainment sectors and enhancing its competitive edge.
Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, expressed enthusiasm about the fundraising initiative and its implications for future growth. “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 ₹900 crore fundraise will be instrumental in accelerating our growth across key segments,” he stated.
He further emphasized that increasing their stake to 91% in Absolute Sports (Sportskeeda) solidifies their leadership position within 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.
The Indian gaming industry is on an upward trajectory, with projections indicating that it could reach $3 billion by 2024. Factors contributing to this growth include rising disposable incomes, changing consumer preferences towards digital entertainment, and an increase in esports events that attract large audiences.
As Nazara Technologies positions itself at the forefront of this burgeoning market through strategic investments and acquisitions, it aims to leverage its enhanced capabilities to capture new segments within both gaming and sports media.
With a clear focus on growth and innovation, Nazara is well-equipped to navigate the evolving dynamics of this rapidly expanding industry while delivering value to its investors and stakeholders.
