Nazara Technologies, a Mumbai-based gaming startup, announced on Saturday (June 18) that it will invest INR 20.10 Cr in Absolute Sports Private Limited.

In an administrative filing, the startup said that its board approved the investment on Saturday, which will be done via secondary purchases of equity shares from Absolute promoter Porush Jain.

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

The filing added that “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.”

Furthermore, Nazara additionally said that its board approved an investment of INR 10 Cr in gaming accessories producer Brandscale Innovations in the form of optionally convertible debentures (OCDs).

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

The gaming organization’s most recent investment in Brandscale Innovations comes a long time after its subsidiary NODWIN Gaming gained a 35% stake, esteemed at INR 10.01 Cr, in Wings, a gaming accessories brand possessed by Brandscale, in April.

Nishit Sharma established Wings in 2018 and he was joined by Vijay Venkateswaran as a co-founder in 2021. The organization’s gaming accessories incorporate gaming earbuds and neckbands, with product development arranged into keyboards, soundbars, headphones, speakers, and mice.

The percentage of Nazara’s shareholding at Brandscale post the membership of the OCDs will rely upon their transformation, the documents said.

In March this year, Nazara reported the acquisition of a 33% stake in the advertising technology firm Datawrkz.
Nazara’s consolidated profit after tax (PAT) increased by 273% year on year (YoY) to INR 50.7 Cr in FY22. Its operating income increased 37% year on year to INR 621.7 Cr in FY22, primarily due to growth in its esports business.

The Indian online gaming and esports markets are developing quickly on the back of a lift from the COVID-19 pandemic.

According to a 2021 KPMG report, the number of online gamers in India is expected to reach around 400 million by mid-2020. The number remained at around 250 million in 2018. It made India the second-biggest base of online gamers after China.

The report likewise stated that the country’s online gaming market is supposed to reach about $3.9 billion by 2025.

Credit: Inc 42