Nodwin Gaming invests €8 million in Freaks 4U Gaming, secures 13.51% stake for global esports collaboration

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Nodwin Gaming, the esports arm of Nazara Technologies, announced a substantial investment of €8 million (approximately Rs 75 crore) in Freaks 4U Gaming, a Germany-based esports agency. This investment secures Nodwin Gaming a 13.51 percent stake in Freaks 4U Gaming, reinforcing its position in the international gaming market.

As reported by Money Control, breaking down the deal, Nodwin Gaming’s Singapore subsidiary will inject €4.4 million (around Rs 41 crore) to acquire a 7.4 percent stake. Additionally, the company is converting its previous investment of €3.6 million (Rs 33.26 crore) made through a convertible note in December 2023 into a 6.1 percent stake. Nodwin Gaming has also secured the right to potentially acquire majority control of Freaks 4U Gaming through a future stock-swap involving Nodwin Gaming shares.

Established in 2011, Freaks 4U Gaming is a globally recognized full-service agency specializing in esports and gaming. With headquarters in Berlin, Germany, the company provides diverse solutions, including strategic brand and marketing consultancy, social media and community management, event management, creative services, and broadcast productions. Employing over 190 people and maintaining regional offices across Europe, Asia, and North America, Freaks 4U Gaming has positioned itself as one of the leading esports content creators globally.

As part of the collaboration, Nodwin Gaming and Freaks 4U Gaming will mutually leverage resources in key territories, sharing personnel, equipment, and facilities. Nodwin Gaming gains access to Freaks 4U Gaming’s network in developed markets and the PC ecosystem, while Freaks 4U Gaming benefits from Nodwin Gaming’s emerging market network, along with capabilities in mobile esports and youth culture ecosystems.

“Nodwin Gaming dominates in emerging markets (including India) while Freaks (4U Gaming) leads in developed markets. Together, Freaks (4U Gaming) and Nodwin Gaming will become even more relevant for global consumer brands and game publishers to operate seamlessly across emerging and developed markets,” stated Nazara Technologies in a stock market filing.

To oversee the integration and synergy benefits, Nodwin Gaming will appoint Niels Wolter from ESL Faceit group to the advisory board of Freaks 4U Gaming. This collaboration aims to create a stronger presence in the realms of PC and mobile gaming, providing enhanced opportunities for both entities.

Nodwin Gaming, founded by Akshat Rathee and Gautam Singh Virk, has been actively expanding its reach through strategic acquisitions and investments. Recently, the company acquired Comic Con India to strengthen its events portfolio. With previous investments from major players like Sony Group Corporation, Krafton, and Innopark, Nodwin Gaming’s valuation soared to $349 million in May 2023, marking a significant increase from its earlier valuation of $135 million in March 2021.