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Zerodha’s founder to invest Rs 100 Cr in Jhunjhunwala-backed Nazara Tech

Nazara-Tech

Shares of Nazara Technologies were trading lower in the last session amid rumors that Zerodha's co-founder, Nikhil Kamath, was looking to buy a 3.5 percent stake in the Rekha Jhunjhunwala-backed online gaming company. Kamath already holds about a 1 percent stake in the company, and Jhunjhunwala holds a 10% stake in the company.
Nazara is a top Indian gaming and sports media platform with a domestic footing and global presence, such as in Africa and North America, with offerings across interactive gaming, e-sports, and gamified early learning ecosystems. The company owns popular IPs such as WCC, CarromClash, Kiddopia, Nodwin, Sportskeeda, Halaplay, and Qunami. Nazara Technologies was an early entrant in the Indian eSports and cricket simulation markets.
In the recent board meeting, which was held on July 10, 2023, several critical decisions were made. In the meeting, it was decided that the company's authorized share capital would be increased. The Board also approved the fundraising plan of issuing equity shares and/or equity-linked instruments or securities, or a combination thereof, for an aggregate amount not exceeding Rs 750 crore. The company aims to strengthen its financial position and support its expansion plans by raising funds through resolution. The company has been actively investing in various gaming and sports media companies.
With its investments in innovative ventures, strategic acquisitions, and diverse offerings, the company has established a strong foothold in the market as it continues to capitalize on the growing demand for eSports, gamified learning, and adtech solutions. Nazara has invested nearly Rs 500 crore in more than ten acquisitions to bolster its mobile gaming, game news, ad tech, and eSports presence. In March of this year, Nazara acquired Pro Football Network for $1.82 million to track the National Football League in the US. The company increased its stake in mobile games developer Nextwave Multimedia in May from 52.38% to 71.88% and many more.
In the most recent capital-raising transaction, it has been confirmed that Zerodha Co-Founder Nikhil Kamath has increased his stake in gaming company Nazara Technologies from 1 percent to 3.5 percent after the conclusion of the transaction. The transaction is worth nearly Rs 100 crore and will be issued to Kamath Associates (1.36%) and NKSquared (1.36%), representing partners Nikhil and Nithin Kamath. The fresh funds will be used to invest in the company's funding requirements and growth objectives, including strategic acquisitions and investments in various companies, Nazara Tech said in a statement.
Nikhil Kamath, on stake increment in Nazara, said, "Gaming in India is poised for strong growth in the years to come, and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara."
The shares of Nazara Technologies opened higher today and are trading at a gain of 9% at Rs. 835

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