How NODWIN Gaming Has Become Nazara Tech’s Biggest Revenue Contributor In 6 Years

Touted as the pioneer of esports in India, NODWIN Gaming has experienced phenomenal growth and diversification since its acquisition by Nazara Technologies in 2018.

When Nazara acquired a 55% majority stake in NODWIN, it was already a trailblazer in India’s nascent esports industry, fostering relationships with global giants like ESL and Valve Corporation. However, NODWIN’s ambitions extended beyond esports.

Recognising the pulse of India’s youth, the company began to spread its wings, venturing into music festivals and other pop culture events. This strategic expansion was fuelled by a combination of organic growth and numerous strategic acquisitions, turning NODWIN into a versatile entertainment powerhouse.

“At the time of the acquisition, NODWIN was already a dominant player in the esports sector, which was one of the key reasons behind our decision. We believed in the long-term potential of this acquisition, and it has certainly paid off,” reminisced Nitish Mittersain, joint managing director & CEO of Nazara Technologies.

He added that since the acquisition, NODWIN’s revenue growth has been exceptional. Today, it contributes 37% to Nazara’s total revenue, having grown 25X in just six years. “This growth is a testament to the foresight of integrating NODWIN into the Nazara portfolio,” he said. Notably, NODWIN’s revenue surged from a modest INR 18 Cr in FY18 to INR 427 Cr in FY24.

Now, before we dive deeper into understanding what NODWIN’s acquisition has meant for Nazara, let’s steal a glance at the company’s early days.

NODWIN’s Early Days 

Founded in 2014 by Akshat Rathee and Gautam Virk, NODWIN Gaming is gradually emerging as a youth-centric recreational, entertainment company with esports being its primary focus area.

Rathee, a gamer at heart, who spent much of his childhood immersed in gaming, began organising esports tournaments at home before the launch of NODWIN. Along with Virk, he set up 30-40 computers in a LAN environment, transforming his house into a hub for gaming enthusiasts. This effort helped the duo build a strong community of gamers, ultimately paving the way for the incorporation of NODWIN Gaming in 2014.

When NODWIN Gaming started, Rathee took the initiative to organise tournaments, which required securing sponsorships. Reflecting on his early days, Rathee said that obtaining sponsorships was challenging and unconventional back then. 

“I often received returnable mousepads as sponsorships, which had to be used for the tournaments and then returned to the sponsors. The concept of turning this into a sustainable business was unclear to everyone, including myself,” Rathee said. 

“During 2010-14, there were not enough marketing companies targeting the gaming market in India. The country’s PC gaming base was too small, and mobile gaming didn’t exist yet. We had to build a fundamentally new category. We sought to redefine the ecosystem by changing its value proposition. Therefore, we focussed on selling to gamers directly rather than people buying a mouse, headset, keyboard, laptop, desktop, or graphics card,” Rathee said.

Fortunately, like many startups, the period of demonetisation (November 2016) provided a significant boost to NODWIN. The esports startup benefited from the wave of digitisation, with everyone turning to digital payments and affordable mobile phones becoming widely available. 

At the time, India had “14 telecom operators”, which were engaged in a desperate cut-throat to slash data prices, which immensely helped them. 

“We were fortunate to be in the right place at the right time. Although we had no role in making data prices cheaper in India, this reduction played a crucial role in our success,” Rathee commented.

The cheaper data prices and the rise of the smartphone era gave a significant boost to the gaming industry, and NODWIN was quick to capitalise on this opportunity. 

As per Nazara filings, NODWIN today owns an 80% share of the Indian esports market basis which it garnered INR 427 Cr in revenue in FY24, up 10% year-on-year. 

NODWIN’s Expansion Strategy At A Glance

Although NODWIN started with esports tournaments, it has expanded its wings over the years to organise music festivals and other youth-centric events.

In addition to growing its intellectual properties (IPs) organically, NODWIN has also taken the M&A route to broaden its reach and influence in the industry. Currently, it has 50+ IPs. 

“We are now operating based on a theory we like to call “Timeshare of Mind Share”. This metric spans NODWIN’s entire ecosystem, encompassing gaming and youth culture. Whether it’s Comic Con events, “Playground” on Mini TV, influencers on Instagram, live streams on YouTube, or our tournaments and BGMS play, this approach is integral to our strategy,” Rathee said.

For example, NODWIN’s IP, BGMI Masters Series, is considered India’s biggest esports tournament. It also started broadcasting BGMS on Star Sports in 2022. Another IP is “Playground”, which premiered on Amazon Mini TV and achieved remarkable success. It has reached over 25 Mn unique viewers across all touchpoints, as per Nazara’s investor presentation.

In a bid to expand its presence in the global entertainment landscape and diversify offerings, NODWIN Gaming acquired Comic Con India earlier this year. 

Including Comic Con India, Nodwin has made five acquisitions. While it acquired Publish.Me and Branded in 2023, the Nazara esports arm took over Ninja last week. Earlier this year, it bought a 13.5% stake in a Germany-based marketing services company for gaming and esports, Freaks 4U Gaming, for €8 Mn (around INR 72 Cr).

While these investments are part of its broader strategy to dominate the esports and youth media space, the financial impact from these acquisitions is expected to reflect in FY25 and beyond.

Moving on, as per Rathee, the startup aims to establish its presence not only on traditional media channels but also across all relevant social media platforms and streaming services. 

“We encompass all forms of media — from digital to social and television — ensuring comprehensive coverage. Additionally, our focus extends to esports and sports media, targeting our audience. Currently, NODWIN Gaming’s sweet spot is individuals between the ages of 16 and 35, with our demographic continuously evolving. As time progresses, our core age demographic will shift, growing by approximately two years annually,” Rathee said.

NODWIN’S Beyond-India Aspirations 

In its quest to capture the attention of the youth, NODWIN Gaming is also focussing on emerging markets. With India as its key market, the company is aggressively foraying into other regions. 

Notable growth is happening in Turkey, Central Asia, and South Asia. Additionally, NODWIN has been setting its footprint in African markets such as Nigeria, Kenya, and South Africa for the past three-four years. 

“We aim to expand beyond our current 22 office locations. Currently, we are aiming for 40 to 50 locations worldwide,” Rathee said.

Moreover, NODWIN Gaming has plans to acquire at least 5-7 more companies in the coming years. 

“Although substantial revenue potential exists in regions around the Tropic of Cancer such as Japan, China, Korea, Europe, and America, our focus on delivery will be directed towards developing and lower-cost markets. This includes countries like the Philippines, Malaysia, Thailand, India, Turkey, Nigeria, Kenya, South Africa, and CIS nations like Uzbekistan and Kyrgyzstan. We also see promising opportunities in Latin American markets such as Mexico and Brazil,” Rathee said.

According to him, the Global South as a market will continue to expand, driven by conversations at forums like the G20 and the United Nations. The growth engine of the world, especially among young people, is increasingly shifting towards these regions. 

Nazara’s NODWIN Game Plan

Nazara Technologies, a prominent gaming company, acquired a majority stake in NODWIN Gaming in 2018. Since then, NODWIN has been significantly contributing to Nazara’s revenue stream. Despite witnessing a slow FY24 due to the impact of India’s ban on online games, NODWIN Gaming anticipates a robust resurgence in FY25, particularly in the esports sector.

Over the past two years, the Indian government has banned popular mobile games like Battlegrounds Mobile India (BGMI) and Free Fire, which are widely used in esports tournaments. This ban has significantly impacted the business case for esports organisers. Nodwin Gaming, in particular, has intellectual properties (IPs) linked to BGMI, which has been affected by these bans.

Moreover, it is also imperative to mention that NODWIN Gaming posted a loss of INR 20 Lakh in FY24 compared to a profit of INR 7.1 Cr in FY23 due to the acquisition made during the year. 

Despite this, the Nazara CEO and joint MD Nitish Mittersain is positive about NODWIN. In an investor call, he highlighted positive developments such as the success of the Playground IP, particularly with Season 3 performing exceptionally well and garnering international interest. 

“Overall, we are optimistic that FY25 will be a much stronger year for esports, building on the groundwork laid in FY24,” he said.

As per the Nazara CEO, with a strong focus on expanding esports operations during FY25, NODWIN is all set for significant international activities in the coming quarters.

Interestingly, Mittersain’s optimism emerges from the fact that NODWIN Gaming accounted for 38% of Nazara’s FY24 revenues which stood at INR 1,138.3 Cr. 

All in all, NODWIN is surrounded by enough growth tailwinds. Given its large market share, new monetisation opportunities, acquisitions and backing from gaming giant Nazara, NODWIN Gaming is expected to start generating significant profits in no time, all while giving a boost to its parent Nazara.

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