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(03 Dec 2024, 12:38)

Nazara Tech gains after board OKs to invest Rs 196-cr in five companies

Nazara Technologies rose 1.29% to Rs 1,023.40 after the company's board approved the five investments totaling to Rs 196 crore aimed at solidifying its position in the gaming and entertainment ecosystems.


Nazara has expanded into physical entertainment with the acquisition of a 60% stake in Funky Monkeys Play Centers, a leader in indoor soft play centers for children, for Rs 43.7 crore. Funky Monkeys operates 11 centers across India, offering interactive play experiences for children. Its turnover was Rs 19.4 crore in FY24.

With this acquisition, the company aims to create an integrated ecosystem that spans both digital and physical gaming experiences. The synergies between the online gaming portfolio and Funky Monkeys’ offline play centres will enable the company to offer a holistic entertainment experience to its young audience. This acquisition diversifies Nazara’s revenue streams and leverages the gaming expertise to enhance customer experiences at Funky Monkeys' centres.

The company will also invest Rs 4.2 crore for a 4.7% stake in BeNinja Solutions (Learntube.ai), an AI-powered platform revolutionizing education with 1:1 interactive and gamified learning. Catering to over 20 lakh learners.

LearnTube is the world largest personalised learning platform that offers affordable, interactive gamified learning experiences for professional skilling. Its turnover was Rs 1.39 crore in FY24.

Nazara will invest Rs 148 crore in its existing subsidiaries including Sportskeeda, Nodwin Gaming, and Datawrkz to increase its ownership in them and support their growth.

Nitish Mittersain said: “Nazara is committed to building the largest diversified gaming and entertainment platform out of India and many of our initiatives announced today are geared towards propelling profitable growth in these strategic areas of our interest.”

Nazara Technologies is India's leading gaming and esports company, owning popular brands like NODWIN Gaming, Sportskeeda, Kiddopia, Animal Jam, World Cricket Championship, and Datawrkz. The company operates in India, the US, and other global markets, offering a diverse range of products and services, including esports, early learning games, casual games, and ad tech solutions.

Nazara Technologies reported a 47.56% decline in consolidated net profit from continuing operations to Rs 11.80 crore despite 7.3% increase in revenue from operations to Rs 318.94 crore in Q2 FY25 over Q2 FY24.

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