Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara

Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara

SUMMARY

Nazara Had Recently Raised $51.1 Mn In A Funding Round Led By IIFL Special Opportunities Fund

Mumbai-based mobile gaming company startup Nazara Technologies today announced that investor Rakesh Jhunjhunwala has acquired a minority stake in the company for approximately $27.99 Mn (INR 180 Cr).

Rakesh Jhunjhunwala’s investment follows the $51.1 Mn funding round led by IIFL Special Opportunities Fund in the beginning of this month.

Nitish Mittersain, Managing Director and Founder, Nazara Technologies stated, “We are delighted to have Rakesh Jhunjhunwala as an investor in Nazara and it is a great validation of value augmentation delivered by Nazara for its existing shareholders.”

Nazara Technologies is a mobile gaming company engaged in the acquisition of, value addition to and distribution of mobile games across emerging markets. It runs mobile gaming subscription services to mass mobile Internet users comprising largely of first time mobile gamers across Africa, Middle East, Southeast Asia, Latin America and the Indian subcontinent.

Commenting on his investment, Rakesh Jhunjhunwala added, “I am always on the lookout for promising companies which are leaders in high growth verticals. Nazara is a leading company in the mobile games business. Nazara has a consistent track record of delivering profits, cash flows, along with efficient use of capital and high ROE. I see a growth potential in the company.”

 A Quick Look At Nazara Technologies And Gaming In India

Founded in 2000 by Nitish Mittersain, Nazara Technologies is a mobile games developer and publisher that provides unique services such as “Games Club.” It also serves as an exclusive distributor for key game developers such as Electronic Arts. Apart from Mumbai, the company has offices in Dubai, London, Africa and Singapore. And has its operations in 61 countries across emerging markets.

In India, Nazara has licensed mobile gaming rights to popular IPs like Virat Kohli, Hrithik Roshan, Chhota Bheem, Royal Challengers Bangalore, Motu Patlu, Mighty Raju, Tinkle Characters and Chacha Choudhary.

As of September 2017, Nazara crossed over 34 Mn downloads with over 10 Mn monthly active users across its network of games on Google Play Store, claims the company. In the same month, the company had also revealed plans to offer an IPO towards the end of FY18 for $156.5 Mn.

As per a Google KPMG report released in May 2017, the online gaming industry in India is estimated to be worth over $360 Mn and is poised to grow and reach $1 Tn Bn by 2021, the industry will likely reach more than 310 Mn gamers around the country. The immense potential of the segment and provided a way for a lot of startups to explore. Last month, two other gaming startups  Smaaash and Passion Gaming also secured funding to the tune of $3.8 Mn and $3.7 Mn respectively.

As per data available, India accounts for around 13% of the world’s online mobile gaming population. However despite the impressive growth, the sector has seen in the last few years, most companies are struggling to break. Nazara Technologies is, however, an exception. In FY17, the company raked in over $86 Mn (INR 550 Cr) in revenue and more than $10.3 Mn (INR 66 Cr) in profits. This investment from seasoned investor Rakesh Jhunjhunwala is a further proof of the profitable and sustainable model created by the gaming startup.

You have reached your limit of free stories
This Diwali, Get Up To 74% Off On Inc42 Plus

Become A Startup Insider With Inc42 Plus

Inc42 Plus Diwali Offer Ends In
countdownmail.com
2 YEAR PLAN
₹19999
₹6499
₹270/Month
UNLOCK 68% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹3499
₹291/Month
UNLOCK 65% 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.

Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara-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.

Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara-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.

Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara-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.

Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara-Inc42 Media
Rakesh Jhunjhunwala Invests $28 Mn In Gaming Startup Nazara-Inc42 Media
You’re in Good company