Nazara Technologies Closes ₹855 Crore Funding Round Led by SBI Mutual Fund

Nazara Technologies, a leading name in India’s online gaming industry, has successfully raised ₹855 crore (approximately $100 million) through a preferential issue of over 8.9 million fully paid equity shares. This funding round, led by SBI Mutual Fund, which invested ₹220 crore, attracted a diverse group of high-profile investors, including Junomoneta Finsol (an associate of Plutus Wealth), Think Investments, Discovery Investments, Mithun Sacheti (founder of CaratLane), Siddhartha Sacheti (CEO of Jaipur Gems), Cohesion Investments, Chartered Finance and Leasing, Ratnabali Investments, and Aamara Capital.

This capital infusion is set to drive Nazara’s strategic initiatives, with a focus on scaling its business and expanding its global presence. A significant portion of the funds will be used to acquire an additional 19.35% stake in Absolute Sports, the parent company of the sports news platform Sportskeeda, increasing Nazara’s ownership to 91%. The remaining funds will support new acquisitions, business expansion, and the pursuit of emerging growth opportunities in India, Europe, and North America.

Nazara has been aggressively building its portfolio through strategic acquisitions. In September, the company acquired a 47.7% stake in Moonshine Technology, the parent company of the online poker platform PokerBaazi, for ₹832 crore. Other notable acquisitions include Comic Con India, marketing firm Publishme (focusing on West Asia and Turkey), Singapore-based events company Branded, Turkish esports firm Ninja Global, UK-based gaming studio Fusebox Games, and Paper Boat Apps, the developer of the edutainment app Kiddopia. Earlier this year, Nazara announced plans to allocate ₹830 crore for mergers and acquisitions in key markets.

Despite its aggressive expansion, the company recorded mixed financial results for the quarter ending September 30, 2024. Operating revenue grew by 7.3% year-on-year to ₹318.9 crore, but net profit declined by 32.7% to ₹16.2 crore, reflecting the impact of its extensive growth strategy.

Sharing his excitement about the funding milestone, Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, described it as a significant step forward. In a post on X (formerly Twitter), he said, “Nazara successfully closes its ₹855 crore funding round onboarding marquee investors.” With this latest round of funding, Nazara aims to solidify its position as a global leader in the gaming and esports industry, leveraging its enhanced resources to drive innovation and capture new market opportunities.