Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations

Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations

SUMMARY

Nazara Technologies will invest INR 20.10 Cr in its material subsidiary Absolute Sports Private Limited, which runs the sports news website Sportskeeda.

Nazara also announced an investment of INR 10 Cr in gaming accessories manufacturer Brandscale Innovations

In April this year, Nazara’s subsidiary NODWIN Gaming acquired a 35% stake in Brandscale Innovations for INR 10.01 Cr

Mumbai-based gaming startup Nazara Technologies on Saturday (June 18) said that it will invest an additional INR 20.10 Cr in its material subsidiary Absolute Sports Private Limited, which runs the sports news website Sportskeeda.

In a regulatory filing, the startup said that its board approved the investment on Saturday which will be done by way of secondary purchase of equity shares from Absolute promoter Porush Jain. 

The proposed investment will further consolidate Nazara’s holding in a “fast-growing and highly profitable” subsidiary, it said. 

“The aforesaid investment in Absolute is subject to negotiation and agreement on definitive documentation and fulfillment of the certain conditions and receipt of corporate and regulatory approvals required, if any,” the filing added.

Besides, Nazara also said that its board approved an investment of up to INR 10 Cr in gaming accessories manufacturer Brandscale Innovations in the form of optionally convertible debentures(OCDs).

“Brandscale Innovations is currently performing exceptionally well and in order to further accelerate their growth, the company is making the aforesaid proposed investment,” stated Nazara.

The gaming company’s latest investment in Brandscale Innovations comes within months after its subsidiary NODWIN Gaming acquired a 35% stake, valued at INR 10.01 Cr in Wings, a gaming accessories brand owned by Brandscale, in April.

Nishit Sharma founded Wings in 2018 and he was joined by Vijay Venkateswaran as a cofounder in 2021. The company’s gaming accessories include gaming earbuds and neckbands, with product expansion planned into keyboards, soundbars, headphones, speakers and mice. 

The percentage of Nazara’s shareholding at Brandscale post the subscription of the OCDs shall depend on their conversion, the filing said.

In March this year, Nazara announced the acquisition of a 33% stake in the advertising technology firm Datawrkz in March.

Nazara reported a 273% year-on-year (YoY) rise in its consolidated profit after tax (PAT) for FY22 at INR 50.7 Cr. Its revenue from operations also grew 37% YoY to INR 621.7 Cr in FY22, primarily driven by growth in its esports business segment.

The Indian online gaming and esports market is growing rapidly, on the back of a boost received from the Covid-19 pandemic.

As per a 2021 KPMG report, the number of online gamers in India grew to about 400 Mn by mid-2020. The number stood at about 250 Mn in 2018. It made India the second-largest base of online gamers after China. 

The report also stated that the country’s online gaming market is expected to reach about $3.9 Bn by 2025.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations-Inc42 Media
Nazara Technologies To Increase Stake In Absolute Sports, Invest In Brandscale Innovations-Inc42 Media
You’re in Good company