Nazara Tech raises Rs 100 crore from Zerodha co-founder Nikhil Kamath’s firms

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Gaming and sports media company Nazara Technologies has raised Rs 100 crore from Zerodha co-founder Nikhil Kamath’s firms through an equity share issue. Earlier this month, there were reports of Kamath making an investment in Nazara which have now turned out to be true.

As per CNBC, Kamath’s firms M/S Kamath Associates and M/S NKSquared have now raised their stake in Nazara to 2.72% from 0.67%. The price at which the shares have been issued to Kamath’s firm is Rs 714.

The stock markets have apparently welcomed the news as Nazara’s shares shot up by nearly 10% on the NSE. Notably, on July 10 Nazara’s board also approved to raise up to Rs 750 crores through equity shares.

With the recent changes in the GST rate for online gaming, Nazara is expecting that it would have minimal impact on its revenue as the company mostly focuses on esports and casual gaming. In FY23, skill-based real money gaming contributed 5.2% only to the revenue.

Speaking on the occasion, Nitish Mittersain, CEO of Nazara Tech, said, “Nikhil Kamath symbolizes success in India’s tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara.”

Kamath himself believes in the potential of esports and video gaming industry. He had also tweeted recently explaining how the gaming and esports industry is a great investment opportunity.

Talking about his latest investment, Kamath said, “Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead. We look forward to supporting Nitish and his team in achieving their growth aspirations for Nazara.”

The online gaming sector is expected to reach Rs 23,100 crore by 2025 as per a recent FICCI-EY report. While the report does include the real money gaming sector, casual mobile gaming and esports are also gaining traction among international investors.

Krafton India, developers of BGMI, has recently announced an investment of $150 million over the course of next 2–3 years, while Japan-based social gaming platform Mixi has set aside $50 million for Indian gaming startups.