Nazara’s investment was part of a larger $1 Mn round raised by Circle of Games that also saw participation from Swiss non-profit The Hashgraph Association
Nazara’s Dubai-based subsidiary acquired 2,164 shares, or 8.5% stake, in the Web3 startup for a sum $500K
Nazara said that the stake acquisition will help it expand its presence in the Web3 and blockchain gaming space and leverage synergies in terms of teams and technology
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Listed gaming giant Nazara Technologies said it has picked up 8.5% stake in Web3 gaming platform Circle of Games (COG) for $500K (about INR 4.17 Cr).
In a separate statement, Circle of Games said that the investment was part of a larger $1 Mn (about INR 8.3 Cr) funding round that also saw participation from Swiss non-profit The Hashgraph Association.
In a regulatory filing with the bourses on Wednesday (April 17), Nazara said its Dubai-based subsidiary acquired 1,273 class A1 preferred shares of COG Holdings Global Ltd, the parent of Circle of Games. Under the deal, Nazara Dubai will also receive additional 891 shares in the company as “advisory shares”.
In total, the listed gaming major will hold 8.5% stake in the Web3 gaming company. The cash-only deal will be executed in one or more tranches, said Nazara.
The Nitish Mittersain-led company said that the stake acquisition will help it expand its presence in the Web3 and blockchain gaming space. Additionally, the deal will also help the two startups leverage synergies in terms of teams and technologies.
Circle of Games, in its statement, said that the $1 Mn funding will be deployed to accelerate its go-to-market (GTM) strategy, scale up platform capabilities and expand its footprint in the US, the EU, Africa, Middle East, and Asia. It will also use a chunk of the capital to expand its gaming portfolio.
“… This collaboration goes beyond mere capital investment; Nazara will offer strategic guidance, support and access to its extensive network to help the company grow…,” said cofounder and CEO of Circle of Games Rabilal Thapa.
Commenting on the fundraise, The Hashgraph Association’s president Kamal Youssefi said, “We are pleased to further empower the global Web3 gaming industry through our co-investment with Nazara Technologies in Circle of Games – the leading Web3 multi-gaming app aiming to onboard the next billion users onto the Hedera network.”
Founded in 2022 by Thapa, Rajeeb VC and Rohit Tiwari, Circle of Games is a Web3 casual multi-gaming platform. The British Virgin Islands-incorporated company claims to have more than 2.5 Lakh registered Android users under its belt and aims to onboard 100 Mn users on its Web3 gaming platform by 2026.
It also leverages its partnerships with Web3 projects and ecosystems such as Chingari, Solana, among others, which offer it access to a 500 Mn+ gaming community in more than 50 countries.
Circle of Games plans to launch its native token ($COG) by the end of June 2024 to woo more users onto the platform.
The development comes amid a spree of acquisitions by Nazara. Last month, the gaming giant said that it has earmarked $100Mn towards mergers and acquisitions over the course of next two years.
As part of this, the company acquired esports and gaming production company Ninja Global FZCO (Ninja) in February this year. Prior to that, it also infused capital in two tranches in German full-service gaming and esports agency Freaks 4U Gaming.
In January, the listed giant’s esports subsidiary NODWIN Gaming also announced the acquisition of 100% stake in Comic Con India for INR 55 Cr in a cash and stock deal.
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