- Nazara Technologies has invested more than 44 crores ($6 million) to acquire a majority stake of 67 percent in Sportskeeda.
- Nazara claims to reach a total of 100 million monthly active users after this acquisition through Sportskeeda’s network.
Game developer and publisher Nazara Technologies has officially announced the acquisition of Sportskeeda and is set to launch IPO in early 2020.
The launch of the company’s IPO will be preceded by the closing of different acquisition deals, said founder Nitin Mittersain. The company earlier decided to launch its IPO in 2018 but later decided to cancel the plan due to the market slump.
He also confirmed that Nazara Technologies has invested more than 44 crores ($6 million) to acquire a majority stake of 67 percent in Sportskeeda. Nazara claims to reach a total of 100 million monthly active users after this acquisition through Sportskeeda’s network.
This investment will go with Nazara’s strategy of portfolio enabling cross networking opportunities and strategic partnerships between the investee companies. He said they might go ahead with a possible synergy between Sportskeeda and Hala Play where Hala Play users can check the Sportskeeda column for latest trends and scores.
According to the MCA filings done by Nazara, Sportskeeda also fits well with their plans of expanding the reach of content from English to regional languages and the video format. It aims to launch a subscription-based business model for the sports enthusiast and curate vernacular content inside the sports domain for mass consumption.
Sportskeeda was founded by Porush Jain in 2010. The company claims to curate over 10K articles per month, reaching more than 25 million active users across the globe. The company reports mainstream sports such as cricket, esports, football, kabaddi, basketball, WWE and many more. Currently, the content is in three languages English, Hindi, and Tamil with plans to introduce 5 more languages.
Commenting on the acquisition, Jain said, “We have our eyes set on becoming the world’s largest multi-sport platform by leveraging Nazara’s geographical reach in the sports-crazy Middle East and Africa markets.”
Mittersain said that they have been building a ‘friends of Nazara’ ecosystem where they want to partner with companies and founders who are like-minded and follow the same idea of doing the business.
He also said that whenever Nazara invests into a company, it leaves a sufficient part of equity with the founders because of the belief of not interfering in the operation of the investees. They keep themselves to operate as a platform and connect the dots.
Mittersain said that when Nazara acquires or invests in a company, it leaves a tangible part of the equity with the founder. Because the company does not believe in interfering in the operations of the investees, Nazara’s job is to operate as a platform and connect the dots.
Nazara boasts of a huge and strong network in interactive gaming and sports media through its acquisitions in various domains of gamings including e-sports, fantasy sports, mobile cricket games, and real money gaming. The portfolio includes HalaPlay, Nodwin, Next Wave Multimedia, Hash Cube, Mastermind Sports, Moonglabs Technologies, Bakbuck, CrimzonCode, InstaSportz, NZWorld.
According to the founder, post-acquisition, these companies have seen notable growth in their revenues. Particularly, Nodwin which he claimed has grown its revenue by 300%.
Nazara was founded in 2000 by Mittersain and is a mobile game developer and publisher which also runs it’s own seed fund for investment in the gaming and sports ecosystem.
The Indian gaming industry is expected to generate a revenue of INR 11,900 crore by 2023 growing at a rate of 22 percent as reported by major KPMG and Indian Federation of Sports Gaming.