Nazara is benefiting from a growing gaming market which is seeinga large influx of mobile users who are willing to pay or watch ads. The companyis focused on organic and inorganic growth(through acquisitions) and is backed byWestbridge, IIFL Asset management and Rakesh Jhunjunwala.
AboutNazara Technologies
Nazara Technologies is the publisher of some of the most popular mobile games on Android and iOS. The company primarily focuses on games based on cartoon characters, sport-stars and actors. Its subscription services are accessed by 130.43 million monthly visitors from over 61 countries including India and emerging markets in the Middle-East, Latin America, and Africa. It also claims to have over 4.08 million paid users.
The company is preparing to launch its much-anticipated IPO in Februarythis yearand is expected to raise Rs 1,000 crore through the public issue. Although the Indian markets are currently in turmoil in the wake of heavy profit booking, the company so far hasn’t hinted that it is likely to postpone the IPO launch.
Ace investor Rakesh Jhunjhunwala has picked up a minority stake Rs 180 crore. He is quoted to find Nazara to be a promising company which has been profitable since 2007 and has maintained a consistent track record of growth.
Over the last 20 years, Nazara hasn’t only developed mobile-oriented gaming content but has also invested in a series of related startups to build a gaming ecosystem in India and across developing countries.The company is tinkering with AI to make its games more interactive and immersive.
The Gaming Market in India
According to a Nasscom report, India’s digital gaming industry has already crossed $890 Mn and is expected to hit $1.1 Billion by 2020. Revenue in India largely comes from advertising in-game, but a growing segment of the population is willing to pay for in-game boosts.
As far as revenues and market capital are concerned, the gaming industry is actually dictated by the US and China. India, with a less-than $1 Bn market valuation, hardly comes into the picture. While China’s gaming market has reportedly crossed $30 Bn, the US($24 Bn) is second, behind China.
However, smartphone and tablet gaming is growing rapidly in the country thanks to increasing affordability of smartphones and cheap internet.
Acquisitions
Nazara Technologies is planning to make a slew of acquisitions, particularly in the real money gaming space as it is reportedly in late-stage discussions with at least four companies in India and Africa.
In August 2018, Nazara had picked up 10% stake Bengaluru-based VR gaming company InstaSportz Consultancy Pvt Ltd.
Earlier in January 2018, the company had also acquired 55% stake in NODWIN Gaming, one of the leading Indian esports venture.
The company has acquired a 70% stake in Kenyan gaming company NZ World, which will launch a host of real-money games across sport-related genres, ranging from fantasy sports, to arcade games and quiz games, beginning with the launch of a FIFA game .
The company had acquired a majority stake in Chennai-based gaming company Nextwave Multimedia in January 2018. It had, however, not disclosed the deal value. The acquisition is expected to help Nazara strengthen its portfolio of offerings in virtual interactive sports.This is not the first time that Nazara has acquired or invested in other gaming firms.
In November 2017, it had invested an undisclosed sum in Mumbai-based fantasy sports platform HalaPlay along with Kae Capital. In August 2017, it had backed Noida-based Moong Labs Technologies Pvt. Ltd, a developer of 3D cricket simulation games.
In April 2016, it had picked up a 26% stake in London-based mobile gaming studio Mastermind Sports Ltd and had invested an undisclosed sum in London-based mobile games studio TrulySocial.
To cash in on gamers’ increasing interest in real money quizzes, Nazara Technologies acquired a 27.42% stake in a development studio CrimzonCode. Nazara has also forged an alliance with Amazon to provide localized Indian gaming experience on Fire TV.
About Nazara Technologies
The Gaming Market in India
Acquisitions
Company Financials