Nazara Technologies, a prominent player in the gaming and sports media industry, has significantly bolstered its position in the e-sports sector with a recent investment. The company has acquired a 15.86% stake in Stan, a blockchain-based e-sports fan engagement startup, for a total cash consideration of $2.2 million. This strategic move underscores Nazara’s commitment to expanding its footprint in the rapidly evolving gaming and e-sports landscape.
In a recent development, Nazara Technologies also acquired Fusebox Games Limited, a UK-based gaming studio, for Rs 228 crore (approximately $27.2 million) in an all-cash transaction. This acquisition reflects Nazara’s ongoing efforts to diversify its gaming portfolio and enhance its market presence.
Stan, founded in 2022 by Chadha, Rahul Singh, Nauman Mulla, and Shubham Gupta, operates as a web3-based platform designed to revolutionize fan engagement in the e-sports arena. The startup enables creators to build and monetize communities, offering users the opportunity to interact with their favorite gaming personalities and celebrities through digital collectibles, chat or audio rooms, and exclusive fan communities.
The platform has already made significant strides in the industry, having raised $2.7 million in January this year from investors including Aptos Labs and Maelstrom Fund. Additionally, Stan secured $2.5 million in seed funding in May 2022, led by General Catalyst and other prominent investors. As of March 31, 2024, Stan boasts a user base of over 12 million and reports a turnover of $1.8 million.
Nazara’s investment in Stan is part of a broader strategy to strengthen its position within the e-sports sector. The company’s latest financial report reveals a 6.06% decline in operating revenue, falling from Rs 266.2 crore in Q4 FY24 to Rs 250 crore in Q1 FY25. Despite this dip, e-sports remains a significant contributor to Nazara’s revenue, accounting for 52.73% of its total operating income. The gaming segment contributed 37.11%, while ad tech made up 10.26% of the company’s revenue.
In recent months, Nazara has been active in expanding its portfolio through various acquisitions. The company has acquired Kiddopia’s developer, Paper Boat Apps, obtained the intellectual property rights for Ultimate Teen Patti, and taken over the assets of DeltiasGaming. These strategic investments and acquisitions highlight Nazara’s proactive approach to enhancing its market position and exploring new growth opportunities in the gaming and e-sports industry.
