Nazara Technologies Expands Stake in Nextwave Multimedia, Eyes Future Growth
Nazara Technologies Limited , a diversified gaming and sports media firm, announced on May 24 its acquisition of a 28.12 percent stake in its mobile gaming subsidiary, Nextwave Multimedia . This move, along with new investments in gaming-focused global venture capital (VC) firms and a casual gaming studio, is part of Nazara's strategy to scale up its gaming business. Founder Nitish Mittersain anticipates that gaming will become the company's primary revenue generator in the coming years.
Nazara initially acquired a majority stake in Nextwave Multimedia in 2018 and increased its ownership to 71.88 percent by May 2023. With the latest acquisition, Nazara will own 100 percent of Nextwave Multimedia, purchasing the remaining shares for Rs 21.63 crore from founders Rajendran PR , R Kalpana, and Jayashree P R in two tranches. The first tranche involves 1,000 shares (3 percent stake) for Rs 2.3 crore in cash, while the second tranche includes 8,375 shares (25.12 percent stake) for Rs 19.33 crore, payable in cash or stock within six months of the first tranche's closure.
Post-transaction, Nazara Technologies plans to merge Nextwave Multimedia and its intellectual property (IP) into the parent company to streamline operations and enhance cash flow.
Nextwave Multimedia, known for developing the World Cricket Championship (WCC) franchise—the largest mobile-based cricket simulation game—has undergone significant operational improvements in the past year. This includes enhancements in ad monetization, live ops, brand sales, and user acquisition, which are expected to drive better retention and monetization for WCC in FY25. The WCC franchise has achieved over 100 million downloads and has 8.1 million monthly active users, with 1.1 million daily active users in Q4-FY24.
In addition to expanding its stake in Nextwave Multimedia, Nazara Technologies is investing up to Rs 16.6 crore ($2 million) in Play Ventures' third fund and up to Rs 2.1 crore ($250,000) in F4 Fund's maiden fund. These VC firms focus on early-stage gaming startups and have a robust portfolio, including Indian companies like Mobile Premier League (MPL) and All Star Games.
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Nazara Technologies is also investing up to Rs 2.1 crore ($250,000) in Pixode, a casual gaming studio with operations in Israel, Ukraine, and the UK, known for games like SoliTown and Soul Battles.
These investments are backed by recent capital raises amounting to Rs 760 crore from investors such as Zerodha co-founder Nikhil Kamath , ICICI Prudential MF, and SBI MUTUAL FUND , bringing the total to Rs 950 crore in FY24.
Nazara Technologies operates across three main sectors: gaming (including World Cricket Championship, Kiddopia, and Animal Jam), esports (Nodwin Gaming, Sportskeeda), and advertising (Datawrkz). The company reported a revenue of Rs 1,138 crore in FY24, a 4.3 percent increase from the previous year, with net profit rising by 21.8 percent to Rs 74.75 crore.
Founder Mittersain remains optimistic about the company's future, noting that their strategic investments and acquisitions are positioning Nazara Technologies for significant growth in the gaming industry.