Online gaming major Nazara Technologies announced that it has raised Rs 250 crore through preferential allotment of equity shares. The company also revealed plans to acquire a 10.7% stake in Kofluence, a leading social media influencer-led marketing-tech platform, through a share swap.
NKSquared & Kamath Associates, ICICI Prudential MF & Plutus Wealth, including Nikhil Kamath, will increase their stake in Nazara through the preferential issue. Nazara Technologies aims to issue up to 28.6 lakh equity shares at a price of Rs. 872.15 per share, aggregating to Rs 250 crore. The fresh funds raised will be utilized for the company's growth objectives, strategic acquisitions, and general corporate purposes.
This move concludes the planned fundraise of Rs 750 crore that was announced earlier in the fiscal year. Nazara Technologies has consolidated cash reserves exceeding Rs 1,500 crore, providing a strong position for pursuing both organic growth and strategic acquisitions, according to Nitish Mittersain, Founder & CEO of Nazara Technologies.
As part of the acquisition, Nazara is proposing to issue 3,71,637 equity shares at a price of Rs. 872.15 per unit, aggregating to Rs 32.4 crore through a preferential issue on a private placement basis to the sellers in the Kofluence deal. Kofluence is a marketing-tech platform with over 600,000 registered creators across various social media platforms, representing over 20 languages.
The partnership with Kofluence is expected to expand Nazara's reach and reshape game marketing dynamics, involving creators and users in an expansive gaming narrative. Sreeram Reddy Vanga, Co-founder, and CEO of Kofluence, highlighted the positive impact on Nazara's game publishing initiative, particularly benefiting from the collaboration.
(With Agency Inputs)
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