Nazara Technologies Secures Rs 250 Crore Investment Led by Nikhil Kamath and ICICI Prudential

Mumbai-based gaming and sports media firm, Nazara Technologies, is set to receive Rs 250 crore in funding through a preferential allotment of equity shares.

Investors: The funding round will be led by billionaire Nikhil Kamath’s Kamath Associates and NKSquared, each investing Rs 50 crore. ICICI Prudential Mutual Fund is contributing Rs 75 crore, and other investors include Plutus Wealth Management, Chartered Finance & Leasing Limited, and ICICI Securities.

Equity Shares and Pricing: Nazara Technologies will issue a total of 28,66,474 equity shares at Rs 872.15 per share as part of the preferential allotment.

Purpose of Fundraising: The raised capital will be utilized for the company’s funding requirements and growth objectives, including strategic acquisitions and general corporate purposes.

Nikhil Kamath’s Previous Investment:

In September 2023, Kamath Associates & NKSquared, managed by Zerodha’s founders Nikhil and Nithin Kamath, invested Rs 100 crore in Nazara Tech. The current investment will increase Kamath firm’s stake to 3.93%, while Plutus Wealth’s stake will rise to 6.63%.

Recent Developments:

Nazara Tech recently acquired a 10.77% stake in influencer marketing platform Kofluence. The company also launched Nazara Publishing to capitalize on India’s growing gaming market.

Financial Performance:

Nazara’s Q3 FY24 financial performance showed promising results with a 16.83% growth in revenue and a 7.86% increase in profits. The company boasts over Rs 1500 crore in consolidated cash reserves.