Listed gaming firm Nazara Technologies has raised Rs 495 crore ($57.2 million) from Arpit Khandelwal, founder and managing partner of investment firm Plutus Wealth Management LLP, and Mithun Sacheti, founder of jewellery brand Caratlane.
The two investors will acquire 5.4% stake in Nazara at Rs 990 per share in a preferential allotment, through Axana Estates LLP, which counts Mithun Sacheti, Siddhartha Sacheti, Yash Sacheti and Arpit Khandelwal as its directors.
The investment increases the collective stake of Axana, Plutus, and Plutus’s associate company Junomoneta Finsol Pvt Ltd to about 27.17%, above the 25% mark that triggers a mandatory open offer. Mithun and Siddharth, and Junomoneta Finsol had previously participated in an $108 million funding round that Nazara completed last year.
The three entities will together launch a public offer to buy 26% additional stake in the gaming firm. The offer will be made at about Rs 990 per share to acquire about 24 million shares, worth about Rs 2,382.3 crore, of Nazara Tech from its public shareholders.
Shares of Nazara jumped about 5% to Rs 1,073 on Monday following the news and were at about 8% premium to the offer price.
If the open offer is fully utilized, Axana, Plutus and its associate, along with Nazara’s existing promotere Vikash and Nitish Mittersain will hold about 61.5% stake in the gaming firm.
“Gaming is the new consumer play, blending entertainment, technology, and community to create unmatched engagement. It has become a powerful platform to connect with audiences and shape consumer behaviour in real time,” said Mithun Sacheti in a statement.
Meanwhile, Nazara’s latest capital infusion will bolster its expansion plan by accelerating organic growth, strategic acquisitions, and expansion into new markets, it said in a statement.
“Nazara is set for global growth, and we are excited to partner with Arpit & Mithun, who share our vision,” said Nitish Mittersain, chief executive of Nazara. “Their belief in our potential and expertise will help us scale new heights, positioning Nazara as a unique global gaming company from India.”
Nitish will continue to lead as CEO of Nazara along with chairman Vikash Mittersain, as the company operates independently.
Additionally, the company also said it is acquiring two popular game IPs–‘CATS: Crash Arena’ and ‘King of Thieves’-- to improve its mobile gaming portfolio. It will pay Rs 67 crore ($7.7 million) to ZeptoLab, a Barcelona-based game developer for the deal.
Nazara, founded in 2010, has been going heavy on its ‘acquire and scale’ strategy over the last few years. It operates in a decentralised manner, allowing these businesses to operate autonomously by their management. The company has added multiple offerings across interactive gaming, e-sports, adtech and gamified early learning ecosystems through its inorganic strategy.
The company has been on an acquisition spree in a bid to improve international presence in offline play. Most recently, it invested Rs 196 crore ($23.1 million) in five companies last month. Its subsidiary Nodwin Gaming agreed to buy gaming and esports media company AFK Gaming. Its strategic moves include the acquisition of Trinity Gaming India, Comic Con in India, German esports and gaming marketing agency Freaks 4U Gaming, West Asia and Turkey-focused marketing agency Publishme, Singapore-based live events firm Branded, and Turkish esports and gaming company Ninja Global.