KAE Capital is investing INR 11.97 Cr from KAE Capital Fund II
Kalysta Capital is infusing INR 2.66 Cr through Mauritius-based Kalysta Capital Fund II
Nazara Technologies is a mobile games developer and publisher
Mumbai-based mobile gaming company Nazara is raising fresh funding from KAE Capital and Kalysta Capital. According to the Ministry of Corporate Affairs (MCA) filings accessed by Inc42, Nazara, in a board meeting on April 28, 2020, floated an offer to raise INR 14.63 from KAE Capital and Kalysta Capital.
While KAE Capital is investing INR 11.97 Cr from KAE Capital Fund II, Kalysta Capital is infusing INR 2.66 Cr through Mauritius-based Kalysta Capital Fund II. As part of the deal, the gaming company is issuing 164,416 and 36,604 equity shares to KAE Capital and Kalysta Capital respectively. The price per share will stand at INR 728 for this transaction.
Founded in 2000 by Nitish Mittersain, Nazara Technologies is a mobile games developer and publisher. The company is backed by marquee investors which include West Bridge Capital, IIFL Special Opportunities Fund; Rakesh Jhunjhunwala and Turtle Entertainment GmbH, the IP owner of the world’s largest esports franchise (ESL).
The company runs mobile gaming subscription services to mass mobile internet users comprising first-time mobile gamers across Africa, Middle East, South East Asia, Latin America and the Indian subcontinent.
Nazara has built a strong network of companies in interactive gaming and sports media through investments and acquisitions in various gaming categories including esports, fantasy sports, mobile cricket games and real money gaming among others.
In April, Nazara along with KAE Capital had invested in fantasy sports platform Halaplay. Last year, Nazara Technologies invested an undisclosed amount in vernacular social contesting women-centric platform BakBuck. Nazara has invested in startups such as HalaPlay, Nodwin, Next Wave Multimedia, Hash Cube, Mastermind Sports, Moonglabs Technologies, Bakbuck, CrimzonCode, InstaSportz, NZWorld, HalaPlay, SportsKeeda and Paper Boat Apps.
According to a report by consulting major KPMG and Indian Federation of Sports Gaming — industry’s self-regulatory body, the online gaming industry in India is expected to generate a revenue of INR 11,900 Cr by 2023, growing at 22% CAGR.
The report also noted a hike in the number of gamers and game developers in India. The number of developer companies touched 250 mark in 2018 as compared to 20 in 2010, while the number of gamers is estimated to have reached 250 Mn from 25 Mn in 2010.
Given, the growing internet adoption, better infrastructure and higher smartphone penetration — the industry potential is huge. Besides Nazara, other players in the segment include Junglee Games, Games2win, MPL, among others.