Nazara Technologies may acquire remaining 49% Kiddopia stake for ₹300cr
Nazara Technologies, a leading gaming company, is reportedly planning to acquire the remaining 49% stake in its subsidiary, Kiddopia, for ₹300 crore. This acquisition is likely to be completed by the end of July, as per CNBC-TV18. The move comes despite Kiddopia experiencing a significant decrease in its subscriber base recently. Nazara Technologies first acquired a controlling 51% stake in Kiddopia for ₹80 crore back in 2020. This acquisition provided an exit for founders Anshu Dhanuka and Anupam Dhanuka.
Kiddopia's declining subscriber base and revenue generation
Kiddopia, a gamified learning app primarily targeting the US market, recorded an 18% year-on-year decrease in subscribers at the end of the 2023-24 fiscal year. This represents a 6.5% decline compared to the previous quarter, bringing its total subscribers down to 2.5 lakh. Despite this downturn, Kiddopia managed to generate revenue of ₹220 crore with an EBITDA of ₹55 crore in FY24.
Nazara Tech's recent mergers and acquisitions
Nazara Tech has been actively involved in mergers and acquisitions recently. The firm operates across three business segments: Gaming, E-sports, and Ad Tech. Its recent acquisitions include Comic Con India, Publish. Me, Ninja, UTP, Freaks4U as part of its strategy to expand its presence in eSports and Youth Media space. These activities are supported by a cash reserve of ₹1,500 crore including ₹950 crore raised through its latest round of fundraising.
Nazara Tech's market capitalization and share performance
Nazara Tech currently has a market capitalization of ₹6,662.57 crore. The company's shares have gained 22% over the last year, reflecting a positive investor sentiment despite the challenges faced by its subsidiary, Kiddopia. Gaming contributes approximately 36% of revenue while E-sports contributes around 55%, demonstrating the company's diversified revenue streams.
