Nazara Technologies, a gaming and sports media company that recently raised Rs 315 crore to boost its acquisition strategy, has expanded its reach to the United States and Europe.
Nazara is attempting to fill some gaps in its casual, social multiplayer, e-sports, and real money gaming divisions, after actively exploring and purchasing startups over the last five years.
“We are looking at expanding our M&A team outside India. All our M&A has broadly happened in India because we are a product of the Indian ecosystem,” said chief executive Manish Agarwal. “We want to really kind of expand our M&A into Europe and US, especially in the mobile gaming space because that’s where you have a long history of game development in Europe for 40 years versus India for four-five years.”
In March, Nazara made its public market debut, becoming India’s first publicly traded gaming company. Since then, the stock has nearly doubled in value.
Gamnat Pte, an investment firm run by Singapore’s sovereign wealth fund GIC, and Ahmedabad-based Plutus Wealth Management contributed to the company’s funding round last week.
“This money which we have raised is a war chest for us to quickly accelerate the deals. If you notice in the past, our deal is always done with a combination of our equity and cash,” said Agarwal. “Having cash really helps you in closing things because then you can satisfy the demands of the founders or financial security needs of the founders much better if you have some cash upfront that you can give.”
According to a report by the Internet and Mobile Association of India, the Indian gaming business is expected to reach $6-$7 billion in value by2025, up from $1.8 billion today (IAMAI).
People were hungry for entertainment options during the Covid-19 pandemic, which boosted the gaming industry’s growth, and video games’ popularity is predicted to continue.
Nazara’s IPO in March included a Rs 583 crore secondary share sale, but the business did not attract any new capital. The additional funds will allow the company to increase its acquisitions.
