Nazara, Lysto Join Hands To Expand Web3 Play

Gaming giant Nazara Technologies and blockchain startup Lysto have signed a letter of intent to launch ‘The Growth Protocol’, a blockchain-focused protocol for digital marketing and growth applications in the Web3 ecosystem.

According to Nazara’s exchange filing, the protocol is designed to improve transparency, fairness and rewards for users in the Web3 marketing.

Built as a Layer-1 (L1) blockchain, the protocol includes a proof-of-concept loyalty dApp for game marketing.

Nitish Mittersain, CEO of Nazara, said “We are very happy to innovate on new and upcoming technologies such as Web3, VR and AI and look forward to integrating our games with relevant Web3 technologies that can add value to our players.”

Earlier this year, the company picked up 8.5% stake in Web3 gaming platform Circle of Games (COG) for $500K (about INR 4.17 Cr). 

The recent update comes on the heels of gaming major announcing plans to acquire additional stake in three of its subsidiaries – Nodwin, Sportskeeda’s parent Absolute Sport, and adtech Datawrkz – and make investments in kids-play centre company Funky Monkeys and edtech Learntube.ai.

Recently, the company secured INR 855 Cr ($101.3 Mn) in a private placement round on November 27. Investors like SBI Mutual Fund, Caratlane founder Mithun Sacheti, Aamara Capital, among others, participated in the round. 

At the time, the company said it planned to utilise the capital to make “strategic acquisitions, fund business expansion, and enhance the company’s ability to seize new growth opportunities”.

Shortly after bagging the fresh capital, Nazara announced the acquisition of gaming agency and platform Trinity Gaming for INR 24 Cr ($2.8 Mn) on November 29. 

It is pertinent to mention that the company’s acquisition spree in 2024 has seen it buy stakes in Pokerbaazi, Paperboat, STAN, Fusebox, Ninja Global FZCO, Freaks 4U, Circle of Games.

On the financial front, Nazara reported a consolidated net profit of INR 16.24 Cr in the September quarter of the ongoing fiscal year (Q2 FY25), down 33% from INR 24.18 Cr in the corresponding quarter last fiscal.