Nazara Technologies Raises ₹474 Cr for Growth & Acquisitions

Nazara Technologies, a prominent gaming and sports media company, announced on June 6 that its board has approved the allotment of 1.82 crore warrants through a preferential issue. This move successfully raised over ₹474 crore from a consortium of investors, marking a significant capital infusion for the company.

The funds are primarily earmarked to bolster Nazara’s strategic acquisition plans and accelerate growth across its diverse business verticals. This preferential issue comes after the company’s initial disclosure on March 30 regarding its plans to raise over ₹500 crore via a similar mechanism.

Funding Details and Strategic Investors

The warrants were allotted at an issue price of ₹260 apiece to a select group of investors. Fidelis Global’s Riambel Capital PCC-RCC1 received the largest allocation, securing 94.85 lakh shares. S Gupta Family Enterprises was allotted 40 lakh shares, while promoter entity Plutus Investments received 38.46 lakh shares.

Peter Thiel’s Founders Collective Fund also participated in the round, securing 9 lakh shares. Nazara has already received approximately ₹118.5 crore upfront, representing the initial 25% warrant subscription amount from these investors. Under the structure, warrant holders can convert the instruments into equity shares within 18 months by paying the remaining 75% of the issue price.

The company noted a minor adjustment to its original plans, as one proposed allottee became ineligible before the allotment process. This led to a reduction of 10 lakh warrants from the initially planned issuance size. Previously, Nazara had shared plans to raise ₹26 crore from Classic Enterprises, a partnership between Sanjeev Singhal, Gaurank Singhal, and Aditya Singhal.

Capital Utilization and Acquisition Strategy

The proceeds from this fundraise are strategically channeled to support key acquisitions, including the recently announced Bluetile Games and BestPlay Systems transactions. Nazara had previously signed definitive agreements to acquire approximately 50% stakes in Spanish casual gaming studio Bluetile Games and player engagement platform BestPlay Systems for a total of $100.3 million.

These acquisitions are central to Nazara’s strategy to establish a scalable platform for AI-enabled game development, distribution, and publishing across its global gaming portfolio. Nitish Mittersain, MD and CEO of Nazara, emphasized the importance of this capital. He stated, “This ₹500 Cr fundraise comes at an important phase in Nazara’s journey as we execute on our most ambitious growth initiatives, including the Bluetile and BestPlay acquisition. This fresh capital, combined with our acquisition strategy, positions Nazara to build globally scalable AI-enabled gaming businesses and further strengthen our leadership in the sector.”

Beyond acquisitions, Nazara also intends to grant a loan of ₹4 crore to its subsidiary, Smaash Entertainment. This investment aligns with the company’s broader efforts to consolidate and expand its presence in various entertainment segments.

Financial Context and Market Performance

This fundraise follows other notable financial activities for Nazara. Weeks prior, Morgan Stanley’s Asia Singapore arm acquired a stake worth approximately ₹69.2 crore in the company through a block deal. Morgan Stanley bought 28.85 lakh shares at ₹239.80 apiece, a transaction that briefly pushed Nazara’s stock up nearly 4% intraday.

Nazara completed the acquisition of the insolvency-ridden sports entertainment firm Smaaash for ₹125 crore in June 2025. Smaaash had been under insolvency proceedings since May 2022 over dues owed to creditors, including Edelweiss ARC, Yes Bank, SIDBI, and Mabella Investment Advisors.

On the financial front, Nazara returned to profitability in Q3 FY26, reporting a net profit of ₹8.8 crore, a recovery from a loss in the previous quarter. However, the company’s revenue experienced a 24% year-over-year decline to ₹406 crore during the same period. Shares of Nazara concluded the trading session 3.25% lower at ₹232.35 on the day of the update.