Nikhil Kamath Invests Rs 100 Crore in Nazara Tech, Showcasing Confidence in Gaming Industry

Nazara Technologies' Key Investment

Nikhil Kamath, the Co-Founder of Zerodha, a prominent financial services firm, has demonstrated his strong belief in the future prospects of the gaming industry. This commitment is reflected in his recent investment of Rs 100 crore in Nazara Technologies, a leading player in India's gaming ecosystem.

Nazara Technologies and Gaming Outlook

Nazara Technologies, in a regulatory filing, confirmed the issuance of shares worth Rs 100 crore to Nikhil and Nithin Kamath, both founders of Zerodha.

Nikhil Kamath, in discussions about his vision for the gaming industry, conveyed his intention to further increase his stake in Nazara, a move that underscores his confidence in its growth potential. Currently, his ownership stands at around 3.5%, a significant increase from the initial 1%.

Global Gaming Growth

Kamath's enthusiasm for the gaming sector is grounded in its remarkable global growth, especially among individuals under 20 years old. He acknowledged the exponential expansion of the gaming and e-sports sectors, surpassing the growth rate of traditional content consumption.

Kamath commended Nazara Technologies for its position as the dominant leader in India's gaming industry, making it a natural choice for his investment. Importantly, he clarified that this investment is a personal initiative and unrelated to Zerodha, a distinct financial services entity.

Promising Future of E-sports in India

In addition to gaming, Nikhil Kamath shared insights into the rapid ascent of e-sports and its promising trajectory in India. He encouraged innovative initiatives within the e-sports and gaming realm, particularly those spearheaded by Indian companies.

Kamath expressed hope that these companies would eventually compete on the global stage, further elevating India's presence in the industry.

Nazara Technologies' Financial Performance

Nazara Technologies has been charting impressive financial growth. In the first quarter of FY23, the company witnessed a 14% increase in revenue, reaching Rs 254.4 crore compared to Rs 223.1 crore in the corresponding period of the previous fiscal year.

Profits soared by 31%, totaling Rs 21 crore as opposed to Rs 16 crore in the same quarter of the previous year.

The company's operating profit, measured as earnings before interest, tax, depreciation, and amortization (EBITDA), registered a notable 10% rise to Rs 33 crore, up from Rs 30 crore in Q1FY23. Margin expansion was also evident, reaching 13% during the quarter.

Nitish Mittersain, Founder, CEO, and Joint MD of Nazara Technologies, offered insights into the company's performance, stating, "Our revenue and EBITDA growth is expected to accelerate in coming quarters due to seasonality and our decision to defer key eSports launches to benefit from upcoming opportunities.

Of note, Sportskeeda continued to deliver a strong performance with a strong 52% growth YoY in revenues and 55% in EBITDA."

With Nikhil Kamath's substantial investment and the promising growth trajectory of both Nazara Technologies and the gaming industry, the future looks exceptionally bright for this dynamic sector.