Gaming company Nazara Technologies plans to buy the remaining 49% stake in its subsidiary and gamified learning app Kiddopia for
₹300 crore, sources told
CNBC-TV18.
The
acquisition could be completed by the end of July.
Kiddopia, which is primarily US-focussed, has been witnessing a substantial decline in its subscriber base.
At the end of 2023-24 (April-March), it recorded an 18% year-on-year decrease in its subscribers, and a 6.5% decline compared to the previous quarter to 2.5 lakh subscribers.
Kiddopia recorded revenue of ₹220 crore with an earnings before interest, tax, depreciation, and amortisation (EBITDA) of ₹55 crore in FY24.
Kiddopia is a product developed by Paper Boat Apps.
The Nitish Mittersain-led company had first acquired a 51% stake in Kiddopia for ₹80 crore in 2020, providing an exit to its founders Anshu Dhanuka and Anupam Dhanuka.
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Gaining full control of the subsidiary is likely to turn the tide in favour of the company and Nitish Mittersain.
Nazara Tech has been on a mergers and acquisitions spree.
The gaming tech company has a cash reserve of ₹1,500 crore including ₹950 crore raised through its latest trench of fundraising.
It operates across three business segments - Gaming, E-sports and Ad Tech. Gaming (Kiddopia + Real money gaming) contributes roughly 36% of revenue, while E-sports contributes around 55%.
It has made several acquisitions of late including Comic Con India, Publish.Me, Ninja, UTP, Freaks4U.
These investments have been made as a part of the company’s strategy focusing on expanding its presence in eSports and Youth Media space.
Nazara Tech has a market capitalisation of ₹6,662.57 crore.
Its shares have gained 22% over the last year.
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