Nazara Technologies invests Rs 196 Cr to boost gaming, entertainment growth

Gaming company Nazara Technologieshas announced investments of Rs 196 crore in five companies, including both new and existing ones, as part of its strategy to drive growth across the gaming and entertainment ecosystems.

This development follows Nazara Technologies’ completion of an Rs 855 crore fundraise through preferential share allotment just a week ago.

The new investments include Funky Monkeys, a provider of indoor soft play centers for children, and Learntube.ai, an AI-powered education platform offering 1:1 interactive and gamified learning.

Nazara acquired a 60% stake in Funky Monkeys for Rs 43.7 crore, with the company operating 11 centers across India that offer interactive play experiences for children.

The gaming firm will also invest Rs 4.2 crore for a 4.7% stake in Learntube.ai, which claims to cater to over 20 lakh learners through its personalised platform offering interactive, gamified learning experiences.

Meanwhile, Nazara has increased its shareholding in existing companies, investing a total of Rs 148 crore in its subsidiaries, including Sportskeeda, Nodwin Gaming, and Datawrkz.

This includes Rs 64 crore in Nodwin Gaming through the subscription of Optionally Convertible Preference Shares, with the funds aimed at supporting its expansion, enhancing its intellectual properties, and strengthening its presence in emerging markets.

A few days ago, Nodwin Gaming fully acquired Trinity Gaming for Rs 24 crore through a combination of secondary sale and stock swap of its shares.

Nazara will also invest Rs 69 crore to acquire shares from the Sportskeeda management through the exercise of ESOPs, raising its stake to 100% and making the company a wholly owned subsidiary.

Additionally, Nazara has 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, Nazara Technologies.

The Nikhil Kamath-backed company reported mixed results for the second quarter of FY25. Revenue from operations grew by 7.3% year-over-year, reaching Rs 318.94 crore. This was driven by a 9.3% increase in gaming revenue to Rs 114.05 crore and a 5.7% rise in esports revenue to Rs 181.76 crore. However, rising costs resulted in a 32.8% year-on-year decline in profit, which fell to Rs 16.24 crore.