Nikhil Kamath,co-founder of brokerage firm Zerodha is now reportedly exploring the possibility of investing in Nazara Technologies, one of the largest gaming and sports media firms. According to a CNBC report, Kamath may want to acquire a 3.5% stake in the firm.
Nazara Tech operates Nodwin Gaming, one of the country’s most prominent e-sports organizations. Nodwin recently, raised $28 million in a funding round led by Nazara, Krafton and JetSynthesys. The company also operates another important sports media subsidiary, Sportskeeda.
Kamath currently owns around 1% stake in Nazara and had recently tweeted in support of the video game and esports industry, calling it a good investment opportunity for online real-money games following the change in GST.
The Board of Directors (BoD) of Nazara Tech also approved a proposal to raise Rs 750 crore by issuing equity shares or securities on preferential basis. The meeting is scheduled to take place on September 4, the company said in a recent exchange filing.
“In accordance with Regulation 29 of the Listing Regulations, we would like to inform you that, among other things, the meeting of the Board of Directors of Nazara Technologies Limited (the “Company”) is scheduled to be held on Monday, September 04,2023. Consider and if deemed appropriate, approve raising of funds by issuing equity shares/securities of the company on preferential basis,” it said.
After the recent change in GST rate on real money gaming industry, , many foreign investors, are putting separate funds to invest in video games, game development and esports sector. Krafton India has pledged to split $150 million into three parts: investments in established firms, , tech and AI firms, and new startups.
Another social networking service (SNS) named Mixi of Japan has entered the gaming market in India with a capital fund of $50 million to invest in early-stage startups.
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