Nazara Technologies, a provider of online gaming and e-sports, has raised Rs 100 crore ($12 million) from Kamath Associates and NKSquared. This is the listed company’s first investment round of the year.
According to regulatory filings with the National Stock Exchange (NSE), the board of Nazara Technologies has approved a special resolution to issue 14,00,560 equity shares at a price of Rs 718 each in order to raise Rs 100 crore, or $12 million.
Nikhil and Nithin Kamath, the co-founders of Zerodha, are the managers of two investment companies: Kamath Associates and NKSquared. In the event of a post-allotment, both companies will collectively own 2.72% of the stake.
The newly acquired funds will be used, according to the filings, to invest in Nazara’s funding needs and growth goals, including for making strategic acquisitions and investments in various corporate entities.
With a share price listed at Rs 815.05 (as of 04/09/2023) at 10:30 AM, Nazara Technologies currently has a market cap of Rs 5,393.5 crore ($652 million).
During the first quarter of FY24, the company experienced a 14% scale, which represents significant growth. Its operating revenue increased significantly from Rs 223.1 crore in Q3 FY23 to Rs 254.4 crore in Q1 FY24. Additionally, its quarterly profit increased 31.19% to Rs 20.86 crore.
A 28% GST (goods and services tax) rule imposed by the Indian government is currently being faced by companies focused on online skill gaming. The entire industry has been sobbing as a result of the new tax structure, which poses an existential threat.
More than 100 Indian CEOs, business owners, and organizations involved in real-money gaming wrote to the Indian government in July urging it to reconsider its position. Nazara joined the group as well.
