Co-founder of brokerage firm Zerodha, Nikhil Kamath, is now reportedly exploring investing in one of the biggest gaming and sports media firms, Nazara Technologies. As per the CNBC report, Kamath may be looking to acquire a 3.5% stake in the firm.

Nazara Tech operates Nodwin Gaming, one of the most prominent esports organisations in the country. Nodwin recently raised $28 million in a funding round led by Nazara, Krafton, and JetSynthesys. The company also operates Sportskeeda, another significant sports media subsidiary.

Kamath currently holds around a 1% stake in Nazara and recently tweeted in support of the video games and esports industry, calling it a sound opportunity for investment after the GST changes for online real-money games.

Nazara Tech’s Board of Directors (BoD) also approved the proposal to raise to Rs 750 crore through the issuance of equity shares or securities on a preferential basis. The meeting is set to be held on September 4, the company revealed in a recent exchange filing.

“Pursuant to Regulation 29 of the Listing Regulations, we wish to inform you that a meeting of the Board of Directors of Nazara Technologies Limited (the “Company”) is scheduled to be held on Monday, September 04, 2023, inter-alia, to consider and if thought fit, approve raising of funds by issuance of equity shares/ securities of the Company on a preferential basis,” it said.

After the recent changes to the GST rate on the real money gaming industry, many foreign investors are setting funds aside to invest in the video games, game development and esports sector. Krafton India has pledged to invest $150 million split into three parts: investment in established firms, tech & AI firms, and new startups.

Another social networking service (SNS) from Japan named Mixi have entered the gaming market in India with $50 million capital fund to invest in early-stage startups.