Saturday, March 02, 2024
Outlook.com
Outlook India
Outlook Business

Nazara Technology Completes Fund Raise of Rs. 750 crores Via Preferential Issue; Acquires 10.77% Stake In Influencer Platform Kofluence

The online gaming company said that it intends to use this capital to fuel the company's growth and expansion initiatives

Nazara Technology Completes Fund Raise of Rs. 750 crores Via Preferential Issue; Acquires 10.77% Stake In Influencer Platform Kofluence
Nitish Mittersain, Founder, CEO, and joint MD of Nazara Technologies
POSTED ON January 18, 2024 3:04 PM

The board of the gaming and sports media platform, Nazara Technologies Limited announced preferential allotment of equity shares to raise up to Rs 250 crores. The Company is proposing to issue up to 28,66,474 equity shares of face value of Rs. 4 each at a price of Rs. 872.15 per equity share aggregating to Rs 249,99,95,299 to six entities, it added in a statement.  

Kamath Associates, NkSquared, Plutus Wealth Management Pvt ltd, Charted Finance & Leasing Limited, ICICI Prudential ESG Fund, ICICI Prudential Flexible Fund, ICICI Prudential Technology Fund are the companies selected for the allocation, it added. 

As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of 6 months from the date of receipt of trading approval. 

This successful fundraise represents a significant milestone for Nazara and concludes the planned fundraise of Rs. 750 crores that was announced earlier in FY24, it added. 

Nitish Mittersain, founder and CEO of Nazara Technologies, expressed his enthusiasm, stating, "With our consolidated cash reserves now exceeding Rs 1500 crores, Nazara is exceptionally well-positioned to pursue both organic growth and strategic acquisitions."   

The company also announced that its board has approved an acquisition of a 10.77 stake in Kofluence Tech Private Limited, a social media influencer-led marketing-tech platform, from certain existing investors of Kofluence (referred to below as the “Sellers”) through a share swap. 

The partnership between Nazara Technologies and Kofluence aims to launch an influencer-driven game discovery platform. This initiative will utilise influencers to promote Nazara's games on various social media platforms.  

Sreeram Reddy Vanga, co-founder, and CEO of Kofluence, stated, "With our extensive network of over 600,000 creators, we're well-positioned to greatly enhance the visibility and engagement of Nazara's gaming portfolio.  

As per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018, these equity shares will be locked in for a period of 6 months from the date of receipt of trading approval. 

This infusion of fresh funds will be utilised to invest in funding requirements and growth objectives of the Company including for making strategic acquisitions and general corporate purposes, it further added. 

This successful fundraise represents a significant milestone for Nazara and concludes the planned fundraise of Rs. 750 crores that was announced earlier in FY24. 

Nitish Mittersain, founder and CEO of Nazara Technologies, expressed his enthusiasm, stating, "We are immensely grateful for the robust support from our esteemed investors, such as Nikhil Kamath, ICICI Prudential MF, and Plutus Wealth, who have substantially increased their investments in Nazara. This not only reinforces their belief in our strategic vision and direction but also significantly strengthens our financial standing. With our consolidated cash reserves now exceeding INR 1500 crores, Nazara is exceptionally well-positioned to pursue both organic growth and strategic acquisitions."   

Nazara also announced that its board has approved an acquisition of a 10.77 per cent stake in Kofluence Tech Private Limited from certain existing investors of Kofluence through a share swap. 

Pursuant to the share swap transaction, the Company is proposing to issue 3,71,637 Equity Shares at a price of Rs. 872.15 per Equity Share aggregating to Rs. 32,41,23,210 (Rupees Thirty-Two Crores, Forty-One Thousand lakhs, Twenty-Three thousand, two hundred and nine only) by way of preferential issue on private placement basis to the Sellers 

The partnership between Nazara Technologies and Kofluence aims to launch an influencer-driven game discovery platform. This initiative will utilise influencers to promote Nazara's games on various social media platforms, it added.

Sreeram Reddy Vanga, Co-founder, and CEO of Kofluence, stated, "Nazara's investment is a powerful validation of our joint mission to revolutionize the gaming industry. With our extensive network of over 600,000 creators, we're well-positioned to greatly enhance the visibility and engagement of Nazara's gaming portfolio. This partnership is not only expanding Nazara's game reach but also reshaping game marketing dynamics, bringing every creator and user into an expansive and captivating gaming narrative." 

  • Related Articles

    The partnership has enabled Capital Now to onboard its customers faster, reducing the overall turnaround time for digital loan disbursement by 25 per cent over their incumbent solution

    FinBox And Capital Now Partner To Speed Up Digital Underwriting By 40 Per Cent

    Medial App app prioritise professionals by employing an algorithm that promotes meaningful content in a non-intrusive manner, fostering learning and growth within its community

    Professional Social Media Platform Medial Raises $120,000 in Its Pre-Seed Round

    WebTalk marks the fifth acquisition for the marketing-tech start-up Wondrlab. The remaining four companies in its portfolio include Cymetrix, Neon, Opportune, and What's Your Problem

    Wondrlab Expands Global Presence With Acquisition Of Poland-Based Webtalk