Nazara Technologies secures board approval for Rs 250 crore fundraising and acquires 10.77% stake in Kofluence

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Mumbai-based Nazara Technologies has garnered board approval for fundraising of Rs 250 crore from a mix of new and existing investors. Notable contributors include Zerodha co-founder Nikhil Kamath, Plutus Wealth, and ICICI Prudential Mutual Fund. This completes Nazara’s targeted fundraise of Rs 750 crore, as announced last year, with prior funding from SBI Mutual Fund and Nikhil Kamath in September 2023.

The diversified gaming and sports media company plans to utilize the funds for potential acquisitions, aiming to expand its existing businesses. Simultaneously, Nazara Technologies revealed its acquisition of a 10.77% stake in Kofluence, an influencer marketing platform, for a total consideration of up to Rs 32.41 crore.

Nazara and Kofluence are set to collaborate on launching an influencer-driven game discovery platform. Influencers will promote Nazara’s games across various social media platforms as part of this strategic partnership.

As reported in Money Control the move follows Nazara’s recent venture into publishing with Nazara Publishing, aiming to tap into India’s growing potential as a global gaming hub. In December, Nazara Publishing selected five games from four Indian game studios and plans to launch up to 20 games across various platforms in the next 12-18 months, investing between Rs 1 crore and Rs 3 crore per game.

In the proposed transaction, Nazara Technologies plans to issue 28.66 lakh shares at an issue price of Rs 872.15 per share. Nikhil Kamath’s firms, Kamath Associates and NKSquared will each invest Rs 50 crore, increasing their combined stake from 2.53% to 3.93%. Plutus Wealth will invest Rs 50 crore, raising its stake from 6.14% to 6.63%. ICICI Prudential Mutual Fund will invest Rs 75 crore across three schemes, increasing its combined stake from 1.75% to 2.81%.

Nazara’s founder, Nitish Mittersain, expressed gratitude for the robust support from investors, emphasizing their belief in Nazara’s strategic vision. The company’s consolidated cash reserves now exceed Rs 1,500 crores, providing a strong financial foundation for both organic growth and strategic acquisitions.

Regarding the acquisition of Kofluence, Nazara Technologies will issue 3.71 lakh shares for Rs 872.15 per share, aggregating to Rs 32.41 crore. Kofluence, led by co-founders Sreeram Reddy Vanga and Ritesh Ujjwal, operates as an influencer-led marketing technology platform with a substantial creator base across multiple platforms.

The collaboration aims to create an influencer-driven game discovery platform, enriching the gaming experience for a global audience.