Nazara Tech Raises Rs 250 Crore, Acquires 10.7% Stake in Kofluence

18 Jan 2024 , 10:46 AM

On January 17, Nazara Technologies said that the board has given the company permission to raise Rs 250 crore from a number of new and existing investors, including ICICI Prudential Mutual Fund, Plutus Wealth, and Nikhil Kamath, a co-founder of Zerodha.

This signifies the accomplishment of the Rs 750 crore fundraising goal it set forth in the previous year. In September 2023, the company had previously raised money from Nikhil Kamath, a co-founder of Zerodha, and SBI Mutual Fund.

The funding is being provided as the diverse gaming and sports media company tries to accumulate cash for future acquisitions that would enable it to expand its current operations.

In addition to announcing the fundraising, Nazara also revealed that it is purchasing a 10.77 percent ownership in Kofluence, an influencer marketing platform, from its shareholders for a possible total of up to Rs 32.41 crore. Sreeram Reddy Vanga, the CEO and co-founder of Kofluence, sold his prior company, OpenPlay, to Nazara Technologies in August 2021 for a sum of Rs 186.4 crore.

Influencers will market Nazara’s games on many social media channels as part of an influencer-driven game discovery platform that Nazara Technologies and Kofluence are set to introduce.

This development follows the company’s establishment of Nazara Publishing, its publishing division, to leverage India’s growing potential as a worldwide centre for gaming.

Nazara announced in December that its publishing division had chosen five games from four Indian game studios, spanning a variety of genres. Over the course of the next 12 to 18 months, Nazara Publishing intends to release up to 20 games for mobile, web3, virtual reality (VR), and PC, investing between Rs 1 crore and Rs 3 crore in each game.

The first gaming business in the nation to go public, Nazara Technologies, announced that it plans to offer 28.66 lakh shares (28,66,474 shares) at a price of Rs 872.15 per share. At the end of the day on January 17, Nazara Technologies was trading at Rs 936.75 on the National Stock Exchange.

Founder Nitish Mittersain stated that the company’s main goal is to expand its portfolio of gaming intellectual property through future acquisitions.

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