Gaming Startup Nazara Technologies Raise $108 Mn (Around 900 Cr), Increases Stakes in Absolute Sports

Gaming company Nazara is raising Rs 900 crore (roughly $108 million) in a fundraising round led by SBI Mutual Fund, with participation from Juno Moneta Finsol, Think India Opportunities Fund, Discovery Global, and others.

According to a statement filed with the National Stock Exchange, Nazara’s board of directors has adopted a resolution to issue 94,31,294 equity shares at an issue price of Rs 954.27 apiece, raising Rs 900 crore ($108 million).

SBI Mutual Fund led the round with Rs 220 crore, while Juno Moneta Finsol and Think India Opportunities Fund each invested Rs 150 crore. Caratlane co-founders Siddharth and Mithun Sacheti also contributed Rs 155 crore. The remaining funds came from Discovery Global, Cohesion MK, Chartered Finance, Ratnabali Investment, Meenakshi Mercantiles, and Aamara Capital.

The preferential allotment is subject to shareholder approval, with the meeting set for October 12, according to the filing.

Related: DGGI Finds INR 81,875 Cr Worth Tax Evaded in Indian Online Gaming Industry In FY24

In a separate strategic move, Nazara purchased an additional 19.35% share in Absolute Sports, Sportskeeda’s parent business, for Rs 145.47 crore. Of this amount, Rs 72.73 crore will be paid in cash, with the remainder coming via a share swap of Nazara’s shares.

Following this deal, Nazara’s share in Absolute Sports will be 91.03%. Absolute Sports recently bought assets from SoapCentral.com and DeltiasGaming.

This is Nazara Technologies’ second fundraise in a year, following recent investments of Rs 760 crore from prominent investors including Zerodha co-founder Nikhil Kamath, ICICI Prudential MF, and SBI Mutual Fund.

In October 2021, the company raised Rs 315 crore from a group of institutional investors, including Singapore sovereign wealth fund GIC, Gamnat Pte, and Ahmedabad-based Plutus Wealth Management. Nazara Technologies went public in February 2021.

Prior to this fundraising, Nazara had a cash balance of Rs 1,450 crore, which it used to make fresh acquisitions, investments, and consolidate its interests in existing companies like Paper Boat Apps and Nextwave Multimedia.

Last Monday, Nazara Technologies announced its largest wager to date, an investment of Rs 982 crore in Moonshine Technology, the parent company of online poker platform PokerBaazi.

Last month, Nazara Technologies bought UK-based gaming firm Fusebox Games for Rs 228 crore ($27.2 million) in an all-cash transaction.

In March, it set aside a $100 million war fund for global expansion over the following 24 months.

Today, the business touched its 52-week high of Rs 1,098 and closed at Rs 1,095. According to Entrackr’s calculations, Nazara’s total market capitalization was Rs 8,381 crore as of September 18.