In the gaming and esports marketing services landscape, Nazara’s NODWIN Gaming has invested INR 33.26 crore (€3.6 million) in Germany-based Freaks 4U Gaming via a convertible note. This partnership unites two industry leaders – NODWIN with its dominant presence in mobile esports in emerging markets, and Freaks 4U Gaming, a powerhouse in PC gaming with a stronghold in developed markets.
As reported in Inc42, the investment deal, executed through Nodwin Gaming International Pte. Ltd., a subsidiary of NODWIN, involves a Convertible Note valued at EUR 3,600,000. Nazara Technologies revealed that the note, if converted, would translate into 7,366 shares at a future date, with the shareholding percentage contingent on the terms and conditions of the convertible note.
Convertible notes, commonly employed by start-ups to secure early-stage capital, involve lending money to a start-up, with the intent of converting it into equity during subsequent financing rounds. This strategic move aligns with NODWIN Gaming’s broader plan to raise $28 million, as disclosed earlier this year, to fuel expansion, incubate new IPs, and venture into unexplored territories.
NODWIN Gaming, under Nazara’s umbrella, has been actively pursuing growth opportunities, as revealed by its acquisition of a 51% stake in media tech start-up Branded, a 35% stake in gaming accessories brand Wings, and the complete ownership of licensed merchandising D2C brand Planet Superheroes. These strategic investments position NODWIN Gaming as a key player in the evolving gaming and esports ecosystem.
With Nazara raising fresh capital of INR 510 Crore from investors like Nikhil Kamath of Zerodha and SBI Mutual Fund, the gaming conglomerate is poised to leverage these funds to support gaming studios capable of developing top-tier games tailored for both Indian and global audiences. As NODWIN Gaming and Freaks 4U Gaming join forces, the collaboration is likely to make them more appealing to global consumer brands and game publishers, promoting a seamless operation across emerging and developed markets.