Nazara raises over $50m to fund acquisitions and AI-led expansion

• The fundraise strengthens Nazara’s acquisition-led growth strategy despite tighter capital conditions across the gaming sector.
• Participation from the promoter group reinforces internal alignment around the company’s next phase of expansion.
• The warrant issue price of $3.12 per share reflects a valuation premium tied to long-term growth expectations.

Nazara Technologies has raised ₹500 crores ($53.6 million) through a preferential issue of warrants as it accelerates its acquisition-driven growth strategy.

The warrants, each convertible into one equity share, will be issued at ₹260 ($3.12) per share, representing a premium to the company’s current market price. 

Nazara said the proceeds will be used primarily to support strategic acquisitions, including the previously announced purchases of Bluetile and BestPlay, while also strengthening its existing business verticals.

Moreover, the new capital would help the company build globally scalable gaming businesses powered by artificial intelligence as it aims to position India as a competitive force in the global games market.

Global ambitions 

The funding round includes participation from Riambel Capital PCC, S Gupta Family Investments, Plutus Investment and Holding Private Limited from the promoter group, Classic Enterprises and Founders Collective. 

Nazara said continued participation from the promoter group at the issue price was positioned by the company as a sign of alignment around its next phase of growth.

“This ₹500 crore 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," said Nazara CEO and joint MD Nitish Mittersain.

“This fresh capital, combined with our acquisition strategy, positions Nazara to build globally scalable, Al-enabled gaming businesses and further strengthen our leadership in the sector."

Nazara has been on an M&A spree over the last few years. Recently the company acquired a 50% controlling stake in social gaming platform Bluetile Games and its rewarded engagement arm BestPlay Systems for ₹918 crores ($100.3 million). 

Other deals have included the purchase of UK-based Love Island game developer Fusebox for $27.2m and the acquisition UK publisher Curve Games for $28.9m, among others.

We spoke with Mittersain last year to discuss the company's M&A strategy and ambitions of growing to a $10 billion valuation.