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Nazara Secures Rs 495 Crore Investment from Arpit Khandelwal and Mithun Sacheti-led Axana Estates

Nazara Technologies Limited has raised Rs 495 crore (around $60 million) in a strategic move aimed at strengthening its position in the global gaming market. The funding comes from Axana Estates LLP, a firm led by Arpit Khandelwal, founder of Plutus Wealth Management, and Mithun Sacheti, founder of Caratlane. This partnership is poised to boost Nazara’s gaming portfolio, setting the stage for new growth and expansion.

Axana Estates’ Role in the Investment

Axana Estates, with Khandelwal and Sacheti at the helm, has committed Rs 495 crore to Nazara Technologies. This investment is not only significant in its financial terms but also strategic, as it positions Nazara for accelerated growth in the mobile gaming industry. Post-investment, Axana Estates will acquire an estimated 5.4% stake in Nazara, pending regulatory and shareholder approvals.

The backing of Axana Estates brings valuable expertise and resources, complementing Nazara’s existing leadership. The move signals the company’s ambition to further establish itself as a global leader in mobile gaming. In addition to the initial stake acquisition, Axana Estates, in collaboration with Plutus Wealth Management, has announced plans to launch a public open offer. This will seek to acquire an additional 26% stake in the company, signaling a deeper commitment to Nazara’s future.

Nazara Technologies mobile gaming

Strategic Investment and Mobile Gaming Growth

This funding round isn’t just about the numbers. The focus is firmly on expanding Nazara’s reach and capabilities in mobile gaming. A crucial part of this expansion includes the acquisition of two mobile game IPs from ZeptoLab for $7.7 million (Rs 67 crore). These games, ‘CATS: Crash Arena’ and ‘King of Thieves,’ are set to be integrated into Nazara’s mobile gaming catalog, to be published under the “Nazara Publishing” banner.

Here’s a breakdown of how the investment will unfold:

  • Investment Value: Rs 495 crore from Axana Estates.
  • Acquisition of 5.4% stake: Post-investment acquisition subject to approvals.
  • Open Offer Plans: Aiming for an additional 26% stake acquisition.
  • Game Acquisitions: ‘CATS: Crash Arena’ and ‘King of Thieves’ for Rs 67 crore.

This investment not only bolsters Nazara’s existing gaming catalog but also expands its footprint in the mobile sector, a key area of growth in the global gaming market.

Nazara’s Recent Financial Growth

Nazara Technologies has been making significant strides in recent months. In Q2 FY25, the company reported a 7.3% year-on-year increase in revenue, reaching Rs 318.94 crore. The profit saw an even more impressive 10.85% growth, totaling Rs 21.97 crore. These figures reflect Nazara’s growing presence in the gaming market, with mobile games driving much of the revenue growth.

This latest round of funding comes just a few months after Nazara’s Rs 855 crore ($100 million) fundraise through a preferential issue, in which Sacheti also played a key role, investing Rs 75 crore. With this new Rs 495 crore investment, Nazara is not just looking at expanding its portfolio but also positioning itself as a major player in the global gaming landscape.

Looking Ahead: The Road to Gaming Leadership

Nazara’s strategic moves, backed by key investors like Khandelwal and Sacheti, indicate a bold future for the company. The plan to expand through acquisitions, bolster its publishing capabilities, and solidify its position in mobile gaming is poised to reshape the gaming industry. With global gaming continuing to grow at an unprecedented pace, Nazara is making all the right moves to ensure it remains at the forefront of the industry.

As Nazara strengthens its global gaming portfolio and prepares for further expansions, the support from Axana Estates, along with its ability to tap into new market opportunities, could propel the company to new heights. The coming months will likely see more announcements and developments as this partnership unfolds.

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