22 February, 2024

Nazara Tech raises Rs 250 cr, acquires 10.7% stake in Kofluence

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Online gaming major Nazara Technologies on Wednesday said it has raised Rs 250 crore via preferential allotment of equity shares.

The company also announced that it will acquire a 10.7 per cent stake in Kofluence, a leading social media influencer-led marketing-tech platform, from certain existing investors through a share swap.

Nikhil Kamath’s NKSquared & Kamath Associates, ICICI Prudential MF & Plutus Wealth will increase their stake in Nazara through the preferential issue.

The company is proposing to issue up to 28.6 lakh equity shares of face value of Rs 4 each at a price of Rs. 872.15 per equity share, aggregating to Rs 250 crore.

Fresh funds will be utilised to invest in funding requirements and growth objectives of the company, including for making strategic acquisitions and general corporate purposes, said Nazara Tech.

This concludes the planned fundraise of Rs 750 crore that was announced earlier in this fiscal year (FY24).

“With our consolidated cash reserves now exceeding Rs 1,500 crore, Nazara is exceptionally well-positioned to pursue both organic growth and strategic acquisitions,” said Nitish Mittersain, Founder & CEO of Nazara Technologies.

Meanwhile, the company is proposing to issue 3,71,637 equity shares at a price of Rs. 872.15 per unit, aggregating to Rs 32.4 crore by way of preferential issue on private placement basis to the sellers in the Kofluence deal.

Kofluence has more than 600,000 registered creators across Instagram, YouTube, Facebook, LinkedIn, and Twitter representing over 20 languages.

“This partnership is not only expanding Nazara’s game reach but also reshaping game marketing dynamics, bringing every creator and user into an expansive and captivating gaming narrative,” said Sreeram Reddy Vanga, Co-founder, and CEO of Kofluence.

Mittersain added that their new game publishing initiative ‘Nazara Publishing’ will particularly benefit from this new initiative.

sukhmandeep
sukhmandeep

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