[Update] Nazara Issues Shares To KAE Capital, Kalysta Capital For Halaplay Deal

Correction Note | 17:18, June 11, 2020

The earlier version of this article had mistakenly reported that Nazara was raising funds from KAE Capital and Kalysta Capital. The same has been updated to reflect that it is a swap-share for KAE Capital and Kalysta Capital’s investment in Halaplay, in which Nazara holds a majority stake.

The original version of this article was titled ‘Exclusive: Nazara Raising INR 14.6 Cr From KAE Capital & Kalysta Capital’. We have updated the headline to more accurately depict the facts of the report.

We deeply regret the error and apologise for the erroneous reporting. The corrected version follows:

Mumbai-based mobile gaming company Nazara is issuing equity shares to KAE Capital and Kalysta Capital for their investment in Halaplay, in which Nazara holds a majority stake. 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 issue equity shares valuing INR 14.63 Cr.

While KAE Capital is getting 164,416 equity share, 36,604 are being issued to Kalysta Capital. 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.

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.

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