Nazara Technologies secures massive Rs 900cr deal, takes over Sportskeeda with 91% stake

Nazara Technologies Limited, a leading Indian gaming and sports media company, has secured its largest-ever fundraise of ₹900 crores. The preferential equity issue, approved by the board of directors, is designed to fuel the company’s expansion plans, including strategic acquisitions and enhanced growth opportunities. This fundraise will significantly strengthen Nazara’s financial base, placing it in a prime position to capitalise on new opportunities in the global gaming and sports media markets.

The ₹900 crores raised from marquee investors such as SBI Mutual Fund, Junomoneta Finsol, and Think Investments demonstrates strong investor confidence in Nazara Technologies’ long-term growth trajectory. The fundraise will also adhere to Securities and Exchange Board of India regulations under the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018.

In addition to this major financial move, Nazara Technologies increased its stake in Absolute Sports, the parent company of the sports media brand Sportskeeda, to 91%. This additional 19.35% stake, worth ₹145.5 crores, was partly financed through cash and the remainder through stock. This acquisition reinforces Nazara’s dominance in the sports media sector, solidifying its leadership not only in India but also in major markets like the US.

A giant leap for Sportskeeda

With Sportskeeda reaching millions of sports fans globally every month, especially in India and the US, this move positions Nazara Technologies to take full advantage of its wide-reaching audience. The company’s CEO, Nitish Mittersain, stated that the fundraise would accelerate the company’s growth in key segments, particularly in expanding its leadership in the sports media space. Mittersain highlighted the remarkable growth of Absolute Sports from a startup to a global player, noting how it has consistently delivered transformational growth.

Sportskeeda’s recent expansion through acquisitions such as Pro Football Network, SoapCentral, and Deltia’s Gaming has diversified its offerings. With its parent company now firmly under Nazara’s control, Sportskeeda is set to play a pivotal role in the company’s overall strategy.

Expert opinion: Growth and consolidation in the gaming industry

This investment round for Nazara Technologies, coupled with its bolstered ownership of Sportskeeda, illustrates the rising prominence of the Indian gaming sector on a global scale. By securing top-tier investors, Nazara has demonstrated its ability to attract confidence in its long-term vision of creating a global gaming powerhouse from India. The investment will likely fuel not only organic growth but also enable Nazara to pursue further acquisitions in gaming, esports, and sports media.

As the company expands its stake in Absolute Sports, Nazara is on track to become a major player in global sports media, leveraging Sportskeeda’s immense popularity and strategic acquisitions to solidify its international presence. The integration of digital ad tech company Datawrkz into its ecosystem also hints at Nazara’s plans to diversify revenue streams, particularly through demand-side user acquisition and supply-side ad monetization.

The landscape of gaming and sports media is rapidly evolving, and companies like Nazara Technologies are positioning themselves at the forefront of this transformation. Their strategy of combining key acquisitions with a robust financial foundation is a sign of growing consolidation in the sector, a trend that will likely continue.