Lessons from Nazara, India's first publicly listed 'Gaming' Company
Plus less than a week to Expand Northstar, Dubai
Hey founders, funds, & friends 👋,
A warm welcome to the 33rd edition of the “Mehtta Ventures Dubai” investment digest newsletter, your weekly news digest about startup stories across the Middle East & India, digital / business trends shaping our lives and curated venture investment opportunities.
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Today’s program:
Expand Northstar, 13 - 16 October, ‘24. Let’s meet?
Nazara: From Startup to India’s first publicly listed “gaming” company
And….Action!
Expand Northstar, 13 - 16 October, ‘24. Let’s meet?
Here’s a sneak peek at what’s new at Expand North Star this year— less than one week to go!
Explore the Corporate Arena for impactful collaborations, discover Tech Transfer 3.0 turning research into real-world solutions, experience the cutting-edge Future of Media & Creativity by Marketing Mania, and engage with the Scaleups Programme. Plus, connect at the exclusive Startup Genome Leadership Forum and catch Sónar+D’s debut at Expo City.
For investors seeking an invite to the “Global Investor Summit”, happening this Sunday, 13th October, please fill out the form here.
The Investor Programme is an exclusive opportunity for vetted investors to:
Access personalized scouting from a pool of 1800+ startups from over 100 countries;
Connect with fellow investors and attendees including speakers, partners, government, and corporate exhibitors;
Access tailored agenda of the week with invitations to the Official Invite-Only Investor Networking Party on Sunday October 13th, relevant content tracks, and satellite events across the week.
Nazara: From Startup to India’s first publicly listed “gaming” company
Dream Big, Play Bold
Not even in our wildest dreams would we have imagined that one of India’s first publicly listed startups would emerge from the gaming industry. Nazara Technologies, a pioneering force in India’s digital and gaming landscape, is proof that startups from any sector can access public markets, offering a crucial exit strategy for investors. Today, investors seek startups with robust fundamentals to diversify their portfolios, and the listing of companies like Nazara only strengthens the startup ecosystem. It provides VCs and angel investors a solid IPO exit to multiply their investments—a win-win for founders and the ecosystem alike.
A Journey from Passion to Market Leadership
Founded in 1999 by Nitesh Mittersain, Nazara Technologies has evolved from a humble games portal to a diversified gaming and sports media powerhouse. The company’s journey began with Nitesh, a tech-obsessed college student, coding games as a childhood passion. From the early days of the internet, when Nitesh discussed digital possibilities with Shammi Kapoor as part of India’s Internet Users Club, to building games with cricketing legend Sachin Tendulkar, Nazara’s journey has been one of relentless determination.
Mittersain reflects, “I promised myself just one thing: that we’ll build a business that is sustainable on its own.” That self-sustaining ethos is what has driven Nazara forward, with organic growth, strategic partnerships, and acquisitions guiding its success.
A Diversified Gaming Powerhouse
Nazara Technologies stands as a testament to the power of diversification. Its presence spans across multiple geographies including India, Africa, and North America, with offerings in interactive gaming, eSports, and gamified early learning ecosystems. Notable subsidiaries like Kiddopia, Nodwin Gaming, and Nextwave Multimedia underscore its wide-reaching influence.
Nazara’s growth can be traced through several key acquisitions:
Nextwave Multimedia: Cricket simulation games, including the wildly popular World Cricket Championship titles.
Nodwin Gaming: Dominating the eSports scene with a majority stake in this company.
Sportskeeda: A significant force in eSports media.
Paper Boat Apps: Developer of the gamified early learning platform Kiddopia.
Openplay & Halaplay: Platforms driving skill-based gaming.
These acquisitions are part of Nazara’s larger ‘acquire and scale’ strategy, which aims to inject $100 million into future mergers and acquisitions over the next two years. Their recent acquisition of a 47.7% stake in Moonshine Technology, parent company of PokerBaazi, further solidifies their position as India’s dominant diversified gaming platform.
The IPO Success Story
Nazara’s IPO journey is nothing short of remarkable. In March 2021, the company listed on the NSE and BSE at ₹1,990 per share, peaking at over ₹2,600 by October of the same year. Today, Nazara’s stock stands at ₹932.15 (as of August 2024), with a market capitalization of ₹7,130 crore ($850 million). The company even executed a stock split in June 2024, signaling its confidence in future growth.
Challenges and Resilience
Like any successful company, Nazara has faced its share of challenges. Recent headlines brought attention to tax notices issued to two of its subsidiaries—Openplay Technologies and Halaplay Technologies—requiring nearly ₹1,120 crore in retrospective tax payments for the FY18-FY23 period. Despite this, Nazara remains resilient, continuing to expand its portfolio and grow its revenue streams.
The Power of Public Listing for Founders
Nazara’s journey demonstrates the unique advantages afforded to founders of publicly listed companies. With access to capital markets, gaming companies like Nazara are empowered to make bold, transformative moves that might otherwise be out of reach. Its strategy to scale its game development division’s revenue from ₹350 crore in FY23 to ₹1,000 crore by FY25 underscores its ambitious growth targets. With ₹850 crore allocated for mergers and acquisitions, Nazara is well-positioned to further strengthen its game development and publishing capabilities, targeting both Indian and global gaming platforms.
Overnight Success Takes 25 Years
Nazara Technologies’ story exemplifies the true startup grind—25 years of passion, persistence, and strategy. This "overnight success" reminds us that dreams do come true, but only after decades of effort, resilience, and a willingness to seize opportunities. For startups and founders, Nazara is a shining example that the road to success is long, but the rewards—especially when you go public—are well worth the journey.
In the words of Nitesh Mittersain, "Looking at all the possibilities, I promised myself just one thing: that we’ll build a business that is sustainable on its own." Nazara Technologies’ history proves that with the right strategy, a bold vision, and unwavering commitment, anything is possible.
We look forward to connecting with you at Expand North Star 2024 and exploring the next big opportunities in tech, especially around the eyeball economy (media, media tech / streaming, gaming, sports tech, ad tech, immersive tech etc)
Best regards,
Mehtta Ventures Dubai
Contact Us
For more information about investment opportunities across Healthcare, AI, Fintech, Media Tech / Video etc please contact me at viniitmehta@mehttaventuresdubai.com OR book time via my scheduling link here.
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