Nazara Technologies Raises Rs 250 Crore, Acquires Stake in Kofluence Tech

Gaming and sports media platform Nazara Technologies made significant announcements on Wednesday, January 17. The company's board approved a preferential share issue worth Rs 250 crore and also acquired a minority interest in social media influencer platform Kofluence Tech through a share swap deal valued at Rs 32.41 crore.

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Preferential Share Issue

Nazara Technologies will raise Rs 250 crore through a preferential share issue to meet funding requirements and growth objectives. The proceeds will be utilized for strategic acquisitions and general corporate purposes. The preferential issue will be primarily offered to external investors, including Nikhil Kamath of Zerodha, ICICI Prudential Mutual Fund, and Plutus Wealth. Post-issue, Kamath will own 5% of the company, making it his largest investment in a listed company.

Acquisition of Minority Interest in Kofluence Tech

Nazara Technologies acquired a 10.77% stake in Kofluence Tech through a share swap deal. The transaction values Kofluence Tech at Rs 32.41 crore. Nazara will issue 3.72 shares at a price of Rs 872.15 per equity share, aggregating to Rs 32.41 crore, by way of preferential issue on a private placement basis. Post-deal, Nazara and Kofluence will jointly launch a social game discovery platform.

About Kofluence Tech

Kofluence Tech is a leading social media influencer-led marketing-tech platform with over 6 lakh registered creators across various platforms, including Instagram, YouTube, Facebook, LinkedIn, and X, in 20 languages. As a full-stack marketing platform, Kofluence caters to performance metrics across creating awareness, interest, desire, and action. It has over 500 clients across 20 sectors.

Nazara Technologies' preferential share issue and acquisition of a minority interest in Kofluence Tech are strategic moves that will strengthen the company's position in the gaming and sports media industry. The preferential share issue will provide the necessary funding for growth and expansion, while the acquisition of Kofluence Tech will enhance Nazara's social media influencer marketing capabilities. These developments position Nazara Technologies for continued success in the rapidly evolving digital entertainment landscape.