Nazara’s Nitish Mittersain On The Big M&A Push And Navigating Public Markets

Nazara is in no mood to slow down, particularly on acquisitions and inorganic growth.

The listed gaming giant has been making headlines for its aggressive fundraising and acquisitions after it went public in 2021, and CEO and joint managing director Nitish Mittersain says that’s not about to stop.

With the latest QIP raised last year, the company is looking to acquire gaming studios and real-money gaming (RMG) platforms both within and outside India.

Nazara has managed to retain investor confidence despite a rocky performance in Q2. And this confidence has paid off after the company’s net profits zoomed over 46% to INR 29.5 Cr from INR 20.1 Cr in the year-ago period. Sequentially, the company’s profit rose 22% from INR 24.18 Cr in Q2 FY24.

With a market capitalisation of close to INR 8K Cr, Nazara recently secured the board’s nod to raise INR 495 Cr from Axana Estates, which is backed by Plutus Wealth Management founder Arpit Khandelwal and CaratLane cofounder Mithun Sacheti, to drive its expansion. 

Nazara’s major strategic acquisitions in the past year include London-based Fusebox Games for INR 234.55 Cr, stakes in Pokerbaazi, Paperboat, STAN, Ninja Global FZCO, Freaks 4U and Circle of Games.

In a conversation with Inc42, Nazara chief executive Mittersain says the results of the acquisitions will become evident in the next few quarters, and the company’s efforts will be reflected in the upcoming financial reports.

An analyst at a brokerage firm told Inc42 that Nazara’s acquisitions will drive revenue growth and widen the operating margins later in the year. Its success will, however, hinge on seamless integration, market competition and regulatory developments in the gaming sector, particularly because the company has invested in Moonshine Technology, the parent of the online poker platform Pokerbaazi.

Organic growth also remains a core focus for the company, while it plans to grow inorganically through acquisitions, Mittersain added.

The blueprint for organic growth focusses on four key areas: expanding the publishing business by acquiring more IPs, investing in game development for titles like World Cricket Championship and Kiddopia, scaling esports arm NODWIN Gaming with larger global tournaments, and enhancing ad-tech and monetisation through adtech division Datawrkz to improve user acquisition and revenue.

In this interview, part of the all-new Griffin Dialogues series, Mittersain shares his experience navigating the company after its IPO. He said that it’s an opportune time for many startups in India to go public as the market has started seeing value in the future of digital technology.

As the founder of the only listed gaming company, Nazara’s Mittersain brings valuable experience in handling the challenges both before and after the IPO, from fundraising to maintaining company values and assessing company worth. He shares his insights to guide upcoming companies on how to successfully navigate the IPO process while staying true to their principles and long-term vision.

Edited excerpts

How did the recent fundraising and stake change impact Nazara’s overall operations? How does the company plan to use the funding?

Nitish Mittersain: There’s no impact on the operations of the company. The current management and promoters continue to be in control. I continue to be the joint MD and CEO, and the rest of the team remains in their roles – there’s no change whatsoever in running the company. So far as funds are concerned, we will spend it on more M&As. We will look at game studios with good IP in the mid-core and casual gaming segment.

Inc42: How will the open offer help the company?

Nitish Mittersain: After the open offer, the promoter group holding will increase significantly, adding to the overall capability of the company. If the whole open offer is subscribed, the promoter group holding will go to 61.5%. 

Inc42: Sacheti and Khandelwal will become the promoters after the open offer. Any specific reasons behind this? Will they also have a role in the management?

Nitish Mittersain: Mithun Sacheti and Arpit Khandelwal are long-term investors with deep expertise in scaling consumer and technology businesses. Their entry as promoters signals their strong belief in Nazara’s potential and their commitment to its long-term vision.

However, they will not be involved in the day-to-day management of the company.

Nazara’s leadership structure remains unchanged, with Vikash Mittersain as Chairman & MD and Nitish Mittersain as joint managing director & CEO, continuing to drive strategy and operations.

Inc42: Will Sacheti and Khandelwal be on Nazara’s board as well?

Nitish Mittersain: As of now, neither Mithun Sacheti nor Arpit Khandelwal plan to join Nazara’s board. Their role will primarily be as strategic investors and advisors, supporting the company’s long-term growth through their expertise in capital allocation and business expansion.

Inc42: What kind of synergies have you seen after the latest slew of acquisitions? How are you managing the overall portfolio?

Nitish Mittersain: We have strong teams, progressive founders and smart management leading each business. Since we operate in a decentralised manner, each team manages its own work. Our core philosophy is running a profitable business – and that’s how we continue to grow each venture. We review the business on a monthly basis and add value wherever possible.

Additionally, we have created centres of excellence at the corporate or central level, specifically focussed on data analytics, user acquisition, and artificial intelligence. These task forces are helping each company improve in these critical areas for gaming. We are happy with the outcome. You will see results in the next few quarters, and our efforts will reflect in the upcoming numbers we report.

Inc42: Any specific acquisition that has performed well for the company?

Nitish Mittersain: We believe the acquisition of FuseBox in the UK has performed well. Likewise, WildWorks, including Animal Jam, has also done well. Paper Boat Apps is starting to pick up, with revenues growing.

These are all profitable businesses with strong synergies with Nazara, particularly in user acquisition, analytics and artificial intelligence. We are fostering a lot of collaboration in these key areas, and so far, it is working out well for us.

Inc42: What kind of growth are you looking at? We saw that profit declined in the last quarter. Do you anticipate a turnaround in Q3 and Q4?

Nitish Mittersain: We are not providing forward guidance at this time. We are maintaining silence on that part as the results are about to be out. We cannot discuss short-term numbers. However, for FY27, we have set an EBITDA target of INR 300 Cr, and all are well on track to achieve that.

Inc42: Too many acquisitions over the last year or so. How are you tackling the cultural issues that come up with such growth?

Nitish Mittersain: While integrating multiple acquisitions presents its challenges, we have proactively addressed them through Project Power-Up, an initiative designed to centralise key operational functions such as finance, compliance, HR, analytics, AI initiatives and user acquisitions across our group companies.

Nazara also believes in empowering the entrepreneurial spirit of the companies we acquire. Each acquired entity operates with a level of autonomy while leveraging Nazara’s scale, expertise, and network. This approach helps ensure synergies without disrupting the distinct culture of each company. We are already seeing strong collaboration across our portfolio, leading to cost efficiencies, knowledge sharing, and enhanced revenue streams.

Inc42: When do you think the acquisition spree will come to an end? What’s happening on the organic expansion front? So far, it seems the focus has been on inorganic growth.

Nitish Mittersain: Acquisitions have been a key driver of Nazara’s expansion and we will continue to explore strategic acquisitions that strengthen our global positioning.

Moving on to the next part of your question, organic growth remains a core focus for us. Some of our key initiatives are:

• Nazara Publishing: Expanding our global publishing business and bringing more IPs into our ecosystem.
• Game development: Investing in new content for World Cricket Championship, Kiddopia, and our interactive storytelling division (Love Island, Big Brother).
• Esports expansion: Scaling NODWIN Gaming by hosting larger global tournaments and expanding regional leagues.
• Adtech and monetisation: Leveraging Datawrkz to enhance monetisation and user acquisition across all gaming verticals.

Our approach will be a balanced mix of organic expansion and selective acquisitions, with a strong emphasis on sustainable and profitable growth.

Inc42: Based on your Nazara experience, what do you think it takes to structure a team effectively, scale operations and create long-term value for employees?

Nitish Mittersain: I think positive intent and positive effort are crucial. As long as you have them in the team, everyone sees that and gets inspired to work well and achieve the goal. Our goal, our vision, our dream at Nazara is to build the first truly globally respected gaming company out of India. Even 25 years from now, when people look at us, they should see that we are making our best effort to achieve that, with the right intent. 

Everything else, like providing good salaries and incentives, is manageable. But I’ve seen that if the vision and the goal resonate with people, they will naturally come together to achieve it.

As for cultural values and practices, we’ve ensured that Nazara remains agile, without many layers of bureaucracy. We still operate with an experimental mindset, adapting as needed. We don’t just focus on business, rather stress on key factors like growth and profitability. I’ve always believed in focussing on the right metrics, and not vanity metrics. These philosophies have always guided us, and they have been instrumental in our success.

Inc42:  What cultural values or practices have you implemented to ensure Nazara remains agile and innovative even as it scales?

Nitish Mittersain: I think we have a very flat structure with minimal bureaucracy. We don’t operate like a traditional corporation. We still function like a startup. Another key aspect is that we are an asset-light business, which makes us highly nimble. We are deeply focused on driving both growth and profitability.

Inc42: How much have these values and processes changed after the public listing?

Nitish Mittersain: Our basic approach to business remains the same as when we started. I believe that for entrepreneurs planning to go public, it’s essential to start operating like a public company at least 18 months in advance. This means focussing on financial discipline, transparency and ensuring that quarterly numbers are well-tracked and reported.

Once a company goes public, it’s equally important to prioritise what’s right for the business in the medium to long term, rather than getting caught up in short-term market pressures. If you make decisions based solely on short-term investor expectations, it can harm the company’s long-term growth.

Inc42: India’s public markets have embraced startups in a big way. What exactly has changed in the past few years that even companies that are not completely mature are going for IPOs?

Nitish Mittersain: The market sees that the tech, digital and internet are the places where the future lies. India has become a massive consumer market with hundreds of millions of users, driven by increasing penetration, digital payments, and a thriving ecosystem.

As a result, investors can now clearly envision what the landscape could look like three, five, or even 10 years down the line. This long-term potential makes them willing to bet on the growth and opportunities ahead.

Inc42: What strategies have been most effective in navigating investor expectations while aligning them with your long-term vision? What lessons can other founders learn from Nazara’s fundraising journey before and after the IPO?

Nitish Mittersain: It’s crucial to build trust with investors by being transparent about the business’s performance. Whether things are going well or not, sharing the truth with investors is key. Transparency is vital for building investor confidence.

Corporate governance also plays a critical role because investors need to trust how you’re running the business. If they can see that you’re focused on doing the right things for the long-term health of the business, they’ll be patient with the performance of the company.

These things don’t happen overnight – they need to be built over time. It’s about walking the talk and consistently establishing trust and credibility.

[Edited by Kumar Chatterjee]