Nazara - Tracking the Growth of India's Largest Mobile Entertainment Platform
📄Company Profiles
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
When it comes to online mobile gaming, India is known for having the largest number of players, and the Indian gaming industry is growing every year. It is currently valued at over $1.027 billion, as reported in 2020. As the market for games among the smartphone generation grows, so does the rivalry among gaming production companies.
Nazara is one of India's most prominent sports and gaming media companies. In countries including India, Africa, and Singapore, the company is a well-known mobile content platform provider and game publisher. The games in the World Cricket Championship and the Motu Patlu series are some of the most recognizable games of Nazara. The current top-grossing smartphone titles of Nazara include the Oggy game and the Chhota Bheem game series for kids.
This article will give a complete insight into the success story of Nazara Technologies. Along with it, we will also help you take a glance at Nazara's business model, Nazara Technologies company details, funding, revenue model, "How it started?" acquisitions, investments, and more.
Nazara: Company Highlights
| Company Name | Nazara Technologies |
|---|---|
| Legal Name | Nazara Technologies Limited |
| Headquarters | Greater New York Area, East Coast, Northeastern US |
| Industry | Gaming, Mobile Gaming, Esports, Video Games |
| Founder | Nitish Mittersain |
| Founded | 1999 |
| Website | corp.nazara.com |
About Nazara and How It Works?
Nazara - Target Market Size
Nazara - Name, Logo and Tagline
Nazara - Founders and Team
Nazara - Startup Story
Nazara - Products
Nazara - Business Model
Nazara - Shareholders
Nazara - Revenue and Growth
Nazara - Awards and Achievements
Nazara - Funding and Investors
Nazara - Investments
Nazara - Acquisitions
Nazara - Partnerships
Nazara - Competitors
Nazara - Challenges Faced
Nazara - Future Plans
About Nazara and How It Works?
Based in Mumbai, India, Nazara Technologies is a mobile game developer and sports media platform. In emerging markets such as India, Africa, Southeast Asia, the Middle East, and Latin America, the company provides a diverse range of gaming products in digital games, interactive learning, esports, and gamified early learning ecosystems.
It also offers solutions for developing, deploying, targeting, and monitoring advertising campaigns on mobile networks, as well as wireless solutions that combine media companies' content, marketing messages, and wireless carriers' customer reach.
Nazara - Target Market Size
Kiddopia in gamified early learning (39% of revenue), Nodwin & Sportskeeda in eSports (32%), WCC & CarromClash in simulation games (5%), and Halaplay Technologies in real money games (3%) are among Nazara's most well-known IPs, while Telco Subscription accounts for 21% of revenue. The company is also hailed for being one of the first entrants in the Indian market in esports and cricket simulation. Its in-house content production, game engine growth, technology stack development, and partnerships with other gaming players can help the company achieve its goal of increased penetration and monetization.
In terms of the market size of the Indian esports industry, it was reported to be over $40 million in 2023. Esports targets teenagers and young adults aged between 16 and 24 years, which form 32% of its audience. On the other hand, there are people between 25 and 34 years of age who form another 30% of them.
Nazara - Name, Logo and Tagline
The company was established as Nazara.com on December 8, 1999, in Mumbai, Maharashtra. Thereafter, the company was converted into a public limited company, and the name of our company was changed to Nazara Technologies Private Limited on December 13, 2017.
Nazara - Founders and Team
Nitish Mittersain
Nitish Mittersain is the founder and joint managing director of Nazara Technologies. Mittersain was a student of Bombay Scottish and then completed a bachelor's degree in business from the Sydenham College of Commerce and Economics. Nitish served as the board director of MEF Mobile, along with Nazara. Furthermore, he has also been a member of the board (South Asia) of the Young Presidents Organization and a trustee of the Dr. BK Goyal Heart Foundation.
Manish Agarwal is the present CEO of Nazara Technologies. An IIM Ahmedabad alumnus, Agarwal had previously worked as the CEO of New Media Venture Ltd., Reliance Entertainment, and Reliance Entertainment Digital after serving big international firms like Microsoft, Rediff.com, and Indian technology giant Infosys.
Nazara - Startup Story
Nazara was founded when the internet was still in its nascent stage, with dial-up connections ruling the market. The company has primarily come into existence as a result of the founder's immense love for gaming. Back in 1999, when Nazara was founded by Mittersain, the company began as an online portal for casual games, which saw exponential growth and now consists of interactive gaming, eSports, gamified early learning ecosystems, and more.
The company has turned into a leading games company from Mumbai that specializes in the acquisition of value-added mobile games and their distribution in emerging markets such as India. Africa, Southeast Asia, the Middle East, and Latin America are some of the world's most populous regions, and we have already seen Nazara penetrating their markets.
In the year 2000, Nitish Mittersain formed Nazara Technologies in Mumbai. However, after an unfortunate incident, the ground swept out from under his feet. In the same year, the first dotcom crash caused him to second-guess his decision and whether or not to back off. He didn't want to close his company, though, because it was the gateway to his dreams. Nitish did his best to withstand the burst of the bubble, and with some clear tactics and a little luck, he was able to do so.
There weren't many companies in India planning to develop gaming technology in the early 2000s. Mittersain's first approach, to benefit Nazara, was to invest in advertising and brand campaigning. He knew that if it caught the public's attention, investors would line up outside his door.
As a result, he invited Sachin Tendulkar, the legendary cricketer of the time, to join the team in 2004. Tendulkar eventually agreed with Nazara Technologies after months of requests and persuasion, after which Nazara handed him over an exclusive contract for three years in 2005. His plan shifted the current competitors' attention away from him. This made the contracts with telecom companies easily fall into place, and soon, Nazara saw an investment of $1.5 million coming from Westbridge Capital.
Nitin Konde
Nazara - Products
The success of some of its mobile games on the Google Play Store, such as World Cricket Championship 2, Chhota Bheem Race, and Motu Patlu Game, reflects localized gamer insights. These games have consistently ranked in the top three games on the Google Play Store's top free charts, ahead of well-known titles like Candy Crush, Subway Surfer, and Temple Run.
Nazara Publishing
Nazara Publishing is the new game publishing division of Nazara Technologies, which was launched on October 30, 2023. Over the following 18 months, the company hopes to invest at least Rs 1 crore in each of up to 20 games. The games will be available for PCs, virtual reality (VR), mobile devices, and web3.
Nazara - Business Model
Nazara works on a subscription-based freemium business model. Subscription companies, freemium businesses, and esports businesses comprise a significant part of its operations. The subscription business caters to a huge number of mobile internet users in developing markets, many of whom are first-time mobile gamers.
Due to gamers' low willingness to pay for online content, the company has adjusted its product offerings to provide optimum value at reasonable prices. Subscription Business's sachet pricing approach allows gamers to sign up for a daily, weekly, or monthly subscription and gain access to the entire catalog of over 1000 Android games. Billing for Subscription Business is done by mobile carriers (carrier billing), which has made it easier for gamers to play and for the company to raise revenue.
Manish Agarwal, the CEO of Nazara Technologies, mentioned Nazara's aim to augment its presence in the freemium segment, with a special focus on developed markets.
Nazara - Shareholders
Nazara Technologies shareholding pattern as of September 2024:
| Nazara Technologies Shareholders | Percentage |
|---|---|
| Promoters | 10.05% |
| Flls | 9.71% |
| Dlls | 12.21% |
| Publkic | 68.03% |
Avantika Bhardwaj
Nazara - Revenue and Growth
- Nazara now has over 130 million monthly visitors
- operates in 61+ different countries.
- Nine of Nazara's in-house games were among the top three downloaded games on the Google Play Store in 2017.
- Users pay subscription fees for access to gamified early learning content, and the company also makes money from its eSports business.
Nazara opened its IPO on March 30, 2021, and the shares were listed at around a 79% premium against the issue price of INR 1101.
Nazara Technologies Financials
| Nazara Technologies Financials | FY23 | FY24 |
|---|---|---|
| Operating Revenue | INR 1,091 crore | INR 1,138 crore |
| Total Expenses | INR 1,052 crore | INR 1,112 crore |
| Profit/Loss | Profit of INR 61 crore | Profit of INR 75 crore |
Nazara's operational revenues grew by more than 4.3% in FY24, from INR 1,091 crore to INR 1,138 crore, when compared to FY23. The company also grew by 23% in terms of profits, which went up to INR 75 crore in FY24 from INR 61 in FY23. This is due to the strong growth that Nazara's esports and real-money gaming businesses reported.
Nazara Expenses
Nazara's total expenses also went up by 5.7%, their total expenses were INR 1,112 crore in FY24, which is slightly higher than it was in the previous year at INR 1,052 crore in FY23
Nazara - Awards and Achievements
Here are some of the popular awards that Nazara won throughout the years:
- Nazara won Sportsie at the M-Billionth Awards in 2017.
- Nazara was bestowed with the MADDIES Silver Award in the category of Apps/Games for innovation in 2016.
- Nazara received the award for the License of the Year in the Gaming category.
Nazara - Funding and Investors
Nazara raised around $407.6 million to date (November 2024)
Nazara Technologies raised INR 855 crore through a preferential issue led by the SBI Innovative Opportunities Fund to boost its gaming and sports media expansion.
The funding and investor details of Nazara are as follows:
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Nov 28, 2024 | Post-IPO Equity | $103 million | - |
| Oct 21, 2024 | Post-IPO Equity | $26.4 million | SBI Mutual Fund |
| Jan 17, 2024 | Post-IPO Equity | $30 million | - |
| Aug 30, 2023 | Post-IPO Equity | $61 million | - |
| Dec 20, 2022 | Grant - Nazara Technologies | - | The Hashgraph Association |
| Oct 6, 2021 | Post-IPO Equity | $38.4 million | - |
| Feb 9, 2021 | Private Equity Round | $13.7 million | Hornbill Capital Advisers |
| Jan 5, 2021 | Secondary Market | $60.436 million | Plutus Wealth Management |
| Feb 8, 2018 | Venture Round | $3.14 milliom | Turtle Entertainment |
| Dec 1, 2017 | Venture Round | $51 million | IIFL Asset Management |
| Nov 28, 2013 | Venture Round | $0.80 million | - |
| Dec 27, 2007 | Series B | $7 million | Sequoia Capital |
| Oct 19, 2005 | Series A | $1.5 million | - |
| Apr 1, 2002 | Seed Round | — | Rajeev Chitrabhanu (MAGNETIC) |
Anagha S
Nazara - Investments
Nazara has made significant investments in various companies like CrimzonCode, Bakbuck, HashCube, and more. The last investment made by Nazara was in BITKRAFT Ventures via a corporate round, when it invested $2.5 million on April 5, 2022. According to the deal, Nazara will be investing $875K in the beginning, while the remaining amount will be invested over the next three years.
Nazara is looking forward to investing Rs 20.10 crore in its material subsidiary, which goes by the name of Absolute Sports Private Limited, which runs the sports news website Sportskeeda. According to the news dated June 18, 2022, the investment has already been given a nod by the board, and it will be done via the secondary purchase of equity shares from Porush Jain, the promoter of Absolute.
The Nazara Gaming Board has also approved another investment in Brandscale Innovations, which will be worth Rs 10 crore and be conducted via optionally convertible debentures.
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| Aug 17, 2023 | SNAX Games Ltd | Corporate Round | $0.15 million |
| Apr 5, 2022 | BITKRAFT Ventures | Corporate Round | Yes |
| October 7, 2021 | Rusk Media | Secondary Market | Yes |
| Aug 21, 2019 | Sportskeeda | Series A | $1.5 million |
| May 7, 2019 | Bakbuck | Corporate Round | - |
| Dec 10, 2018 | HalaPlay Technologies | Series A | $5.32 million |
| Aug 16, 2018 | InstaSportz Consultancy | Corporate Round | - |
| Jul 3, 2018 | CrimzonCode | Corporate Round | - |
| Jan 9, 2018 | Next Wave Multimedia | Venture Round | - |
| Apr 7, 2016 | TrulySocial | Venture Round | - |
| Nov 6, 2014 | HashCube | Series A | $0.68 million |
Nazara - Acquisitions
Nazara has acquired 11 companies. Here's a list of Nazara's Acquisitions to date:
| Aquiree Name | About Aquiree | Date | Amount |
|---|---|---|---|
| Fusebox Games | Renowned for its interactive story-based games inspired by popular television serials | Aug 8, 2024 | $27.4M |
| Paper Boat Apps | Developer and publisher of the gamified learning app ‘Kiddopia,’ which is designed for children in the age group of 2-8 years | Jul 19, 2024 | $36M |
| Datawrkz | Digital advertising firm founded in 2013 and headquartered in Texas, which has been working with independent agencies and mid-market brands | Jan 18, 2022 | $7.8M |
| Planet Superheroes | Mumbai-based licensed premium character merchandising company | Jan 13, 2022 | - |
| OpenPlay | India's fastest skill-gaming company from Hyderabad | Aug 27, 2021 | $25.38M |
| Publish Me | Full-service gaming marketing agency based in Turkey | Jun 17, 2021 | $2.67M |
| HalaPlay Technologies | A daily fantasy sports platform. | Jun 12, 2020 | $1.95M |
| Paper Boat Apps | Paper Boat Apps is a children's games development studio | Oct 16, 2019 | $11.15M |
| SportsUnity | SportsUnity is a cricket quiz platform that provides a one of a kind experience simulating a real cricket match. | Sep 18, 2019 | - |
| Sportskeeda | Sportskeeda App is your home for exclusive sports content. Personalize your app to receive alerts for your favorite teams and leagues. | Aug 21, 2019 | $5.87M |
| NODWIN Gaming | NODWIN Gaming is a gaming solutions company and creator of e-sports events. | Jan 24, 2018 | - |
| MyGamma | MyGamma is a Communities company. | Jan 22, 2013 | - |
| Djuzz | Djuzz (m.djuzz.com) provides a rich variety of free downloads of close to 5000 mobile games and applications. | Jan 22, 2013 | - |
Nazara Technologies has exited from three companies:
- NODWIN Gaming
- Sportskeeda
- HalaPlay Technologies
Abhishek Gupta
Nazara - Partnerships
Nextwave Multimedia, a subsidiary of gaming technology company Nazara Technologies, has partnered with Cricket Australia to create mobile-based cricket league games for the international market. Nextwave, a Chennai-based company in which Nazara owns a majority stake, has signed a three-year licensing agreement with Cricket Australia to create a new ‘Big Bash Cricket' game based on its iconic mobile cricket gaming platform.
On November 13, 2024, Nazara Technologies partnered with ONDC to launch ‘gCommerce,’ an in-game monetization platform to boost Indian developers' revenues by integrating e-commerce into games.
Nazara Technologies partnered with Telangana's government on september 5, 2024, to launch an AI Centre of Excellence for innovation in gaming, interactive media, and digital content using AI, VR/AR, blockchain, and Web 3.0.
Nazara - Competitors
Nazara's top competitors are:
- Juego Studio
- PlaySimple
- Hammerplay Studios
- Mobi2fun Mobile Entertainment
- Flixy Games
- Workboard
- PickMe
- Spireon
- InfoStretch and more.
Vidhi Punamiya
Nazara - Challenges Faced
For several years, the development of digital services was stifled by prohibitive internet access, high smartphone prices, and a payment system that was underdeveloped. In a draught red herring prospectus, Nazara Technologies stated that "all of these regions exhibit market commonalities in terms of improving economic outlook and increasing digital adoption, backed by bullish macroeconomic factors such as consistent GDP growth, the online population, a younger median age, and a fast-growing, affordable smartphone market."
The business, which is backed by renowned stock market investor Rakesh Jhunjhunwala, first filed a draught red herring prospectus (DRHP) in January 2018 and also received SEBI approval for an IPO. However, due to a market downturn, the launch was canceled. However, it was again approved later on and the company was finally listed at NSE.
- Nazara Technologies announced a restated loss in the fiscal year 2020 and for the six months ending September 30, 2020.
- In the last three fiscal years, one of its group companies has lost money.
- It might not be able to efficiently monetize its e-sports products, which could have a material and negative impact on the company's market, financial position, and cash flow.
PV Vyshnavi
Nazara - Future Plans
“IPO is a huge milestone in our journey, and the journey is that we want to be in the top 5 global gaming companies. It is a strategic tool for us to achieve that goal,” said Manish Agarwal, CEO of Nazara.
However, there are several distinctions between the Indian and global gaming environments. According to Agarwal, the gaming industry is dominated by free-to-play games with in-app purchases, which drive global money revenue on the non-real gaming money side.
“In that, in-app purchases is driven by hardcore games. In India, if there are about 380 million gamers, out of that 300 will not do in-app purchases, it’s a very small segment today where people have an inclination to buy virtual items in a game. The driver of that is competitive multiplayer which needs high quality internet, stable connections. The infrastructure for that is improving in India but is still not there. When you have 200-250 million doing competitive gaming over their mobile networks, that's when you will see monetization,” he said.
But there is still reason to be optimistic. Gaming is becoming the go-to entertainment for young Indians aged 14 to 25, and this will drive development.
On 13 March 2024, Nazara Technologies stated that they will invest $100 million in acquisitions for the next 24 months, focusing on gaming studios, IPs, and techs like AI and web3. It aims to scale globally, leveraging success with Kiddopia and Nodwin Gaming, while targeting India’s 500M gamers and the North American market
FAQs
What do Nazara Technologies do?
Nazara Technologies, based in India, is a mobile game developer and sports media platform.
Who founded Nazara?
Nitish Mittersain is the Founder & Managing Director at Nazara Technologies.
How do Nazara Technologies make money?
Subscription companies, freemium businesses, and esports businesses are also part of the operations. The subscription business caters to a huge number of mobile internet users in developing markets, many of whom are first-time mobile gamers.
What companies do Nazara Technologies compete with?
Nazara's top competitors are Juego Studio, PlaySimple, Hammerplay Studios, Mobi2fun Mobile Entertainment, Flixy Games, Workboard, PickMe, Spireon, and InfoStretch.
Must have tools for startups - Recommended by StartupTalky
- Convert Visitors into Leads- SeizeLead
- Manage your business smoothly- Google Workspace
- International Money transfer- XE Money Transfer
