Nazara Technologies, a prominent player in India’s gaming and entertainment sector, has announced an investment of Rs 196 crore in five companies as part of its strategy to drive growth across its ecosystem.
This move follows the company’s successful completion of an Rs 855 crore fundraise just a week ago through a preferential share allotment.
The new investments include a major stake acquisition in Funky Monkeys, a company specializing in indoor soft play centers for children.
Nazara has acquired a 60% stake in Funky Monkeys for Rs 43.7 crore, with the company currently operating 11 centers across India that offer interactive play experiences for children.
In addition, Nazara has invested Rs 4.2 crore for a 4.7% stake in Learntube.ai, an AI-powered education platform that offers personalized, gamified learning. Learntube.ai serves over 20 lakh learners through its interactive platform.
The company has also increased its investments in its existing subsidiaries, committing Rs 148 crore to further strengthen its position in the market.
This includes Rs 64 crore in Nodwin Gaming, aimed at supporting the expansion of its intellectual properties and boosting its presence in emerging markets. In a strategic move, Nodwin Gaming recently acquired Trinity Gaming for Rs 24 crore.
Additionally, Nazara will invest Rs 69 crore in Sportskeeda, acquiring shares from the management via ESOPs, thereby raising its stake to 100% and making the company a wholly-owned subsidiary.
The company has also given in-principle approval for an investment of Rs 15 crore in Datawrkz through the subscription of Compulsorily Convertible Cumulative Preference Shares to support its growth.
“Nazara is committed to building the largest diversified gaming and entertainment platform out of India and many of our initiatives announced today are geared towards propelling profitable growth in these strategic areas of our interest.” said Nitish Mittersain, Joint MD and CEO of Nazara Technologies.
Despite reporting a mixed performance for the second quarter of FY25, with revenue from operations growing 7.3% year-on-year to Rs 318.94 crore, Nazara’s profit for the period declined by 32.8% to Rs 16.24 crore due to rising costs.
The growth in gaming and esports revenue by 9.3% and 5.7%, respectively, could indicate strong future prospects for the company as it continues to diversify and expand its portfolio.
