Nazara Technologies Limited has announced the acquisition of an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) for INR 300 crores.
This purchase, made from PBA’s promoters Anupam and Anshu Dhanuka, will be paid in cash in tranches, bringing Nazara’s ownership in PBA to 100%.
The total cash consideration of INR 300 crores will be paid in three tranches: INR 225 crores within seven days of necessary approvals, INR 50 crores within 45 days from the closing date, and the remaining INR 25 crores after completing the handover process.
Paper Boat Apps is renowned for its popular children’s digital learning app, Kiddopia, which is the #3 grossing app for children aged 2-8 in the United States.
Since Nazara’s initial acquisition of a 50.91% stake in 2019, Kiddopia has seen significant growth, becoming a beloved franchise among children worldwide.
Nazara plans to merge Paper Boat Apps into the company, bringing Kiddopia’s globally recognized IP in-house.
This strategic move aims to capitalize on Kiddopia’s healthy cash flows, which will be reinvested for both organic and inorganic growth.
In FY24, Paper Boat Apps reported a consolidated revenue of INR 219.4 crores and an EBITDA of INR 56.1 crores, with a net cash balance of INR 155.74 crores as of March 2024.
This acquisition aligns with Nazara’s strategy to drive Kiddopia’s expansion through IP licensing, global market reach, and additional revenue streams including merchandising, video, and advertising revenues, enhancing the current subscription model.
Nazara’s CEO and Joint Managing Director, Nitish Mittersain, emphasized the potential of Kiddopia, stating, “At Nazara, we believe an IP such as Kiddopia has immense potential that can be unlocked through several new initiatives and acquiring full ownership underscores our commitment to intensifying our efforts in the gamified learning sector.”
Anupam Dhanuka, promoter of Paper Boat Apps, expressed satisfaction with the acquisition, highlighting Kiddopia’s tremendous growth under Nazara’s majority ownership and its future potential.
About Nazara Technologies Ltd.
Nazara Technologies, India’s sole listed gaming and esports company, holds majority stakes in several prominent gaming and esports brands with operations in India, the United States, and other international markets.
In the esports arena, Nazara boasts India’s premier esports platform, NODWIN Gaming, alongside influential sports media entities Sportskeeda and Pro Football Network.
Nazara’s interactive gaming segment features leading global gamified early learning ecosystems such as Kiddopia and Animal Jam. The company also owns the highly popular cricket simulation franchise, World Cricket Championship (WCC), and a diverse range of casual games distributed through telecommunications partnerships across numerous emerging markets.
Moreover, Nazara oversees Datawrkz, a digital ad tech company that enhances its portfolio companies’ capabilities and offers user acquisition and ad monetization services to external clients.
