Nazara Tech falls after Zerodha's Nikhil Kamath raises stake in ₹250cr funding round 

Nazara Technologies has recently taken a step to raise ₹250 crore through a preferential allotment of equity shares, with key investor Nikhil Kamath of Zerodha leading the way. Prominent investors, including Nikhil Kamath's Kamath Associates, NKSquared, Plutus Wealth Management, Chartered Finance & Leasing, and ICICI Prudential Mutual Fund, will collectively acquire 28.66 lakh shares of Nazara Technologies at ₹872.15 each, this investment comes at a 6.9% discount to the closing price on 17 January.

Stakeholder Contributions

Zerodha co-founder Nikhil Kamath's firms, Kamath Associates and NKSquared, are set to invest ₹50 crore, increasing their combined stake from 2.53% to 3.93%. Plutus Wealth Management is also injecting ₹50 crore, elevating its stake from 6.14% to 6.63%. This fundraising follows Nazara Technologies' earlier infusion of funds from SBI Mutual Fund and Nikhil Kamath in September 2023. This shows they've reached their fundraising goal of ₹750 crore set last year.

Nazara Technologies to acquire a 10.77% stake in Kofluence Tech

Nazara Technologies obtained board approval to acquire a 10.77% stake in Kofluence Tech, a leading social media influencer led marketing tech platform. The transaction involves a share swap, with the total value of the issuance amounting to ₹32.41 crore.

Nazara Technologies and Kofluence Tech are set to launch an innovative influencer driven game discovery platform. This collaborative effort aims to leverage the reach of social media influencers to promote Nazara's games across various platforms. Influencers, representing a diverse spectrum across Instagram, YouTube, Facebook, LinkedIn, and Twitter, will play a pivotal role in creating buzz around new releases, driving downloads, and enhancing user engagement.

The partnership between Nazara Technologies and Kofluence marks a transformative approach to game distribution. By creating a robust network for gaming content on social media, this influencer-led strategy intends to penetrate deeper into the market, reaching diverse audiences. The model enables influencers to showcase games effectively, making Nazara's gaming content more accessible and engaging across different social media platforms.

Nazara Technologies' stock has had a bit of a mixed ride lately. In the last month, it inched up by 2.84%, showing a modest gain. Looking back over the past six months, the stock rose by 37.81%. Over the last year, stock increased by 54.72%.

Nazara Technologies' stock reached its peak at ₹1568 in October 2021. However, it has since been on a decline and is currently trading at ₹913, marking a decrease of about 42% from its highest point.

Final Words

Nazara Technologies' recent financial moves, coupled with the partnership with Kofluence, position the company for enhanced growth and market reach. The infusion of funds and the innovative influencer-led game discovery platform highlight Nazara's commitment to staying at the forefront of the dynamic gaming industry.