Indian sports and games startup Nazara delivers $ 75mn out of $ 3mn investment in WestBridge Capital

Indian sports and games startup Nazara delivers $ 75mn out of $ 3mn investment in WestBridge Capital
image via Nazara

Indian sports and games startup Nazara delivers $ 75 million out of a $ 3 million investment in WestBridge Capital.

Ahmedabad-based financial advisory firm Plutus Wealth Management LLP and its associates bought shares worth Rs 500 million in the Rakesh Jhunjhunwala-backed mobile gaming startup Nazara Technologies from one of the company's early investors. , WestBridge Capital, which provided the latter with a full exit from the gaming company.

Westbridge Capital is among the first investors to have been with Nazara since 2005. Westbridge Capital through WestBridge Ventures II Investment Holdings had invested around $ 3 million in 2005 and acquired a 60% stake in Nazar Technologies. Since then, his investment in Nazara has grown significantly.

The private equity fund experienced a partial exit in 2017, reducing its stake from 60% to 21%, the same year that Rakesh Jhunjhunwala invested a record 182 million rupees in the company. Now, with the launch of the Nazara Technologies IPO on the horizon, WestBridge Capital has completely exited the company and sold its remaining stake in a record Rs 500 million deal to Plutus Wealth Management LLP.

Since its inception in 1999, Nazara has grown significantly to become the leading sports and games company in India. The game company has developed popular games like World Cricket Championship, Chhota Bheem Race, Motu Patlu Race, etc. and acquired a range of gaming companies including names like HalaPlay, Nodwin Gaming, Next Wave Multimedia, Hash Cube, Mastermind Sports, Moonglabs Technologies, Bakbuck Applications, CrimzonCode, InstaSportz, NZWorld, SportsKeeda, and Paper Boat.

Today, Nazara has a network of over 100 million players in India and posted a record revenue of INR 264 Cr in FY2020, compared to INR 164 Cr in 2018-19. The company now also operates in other geographies besides India, including Latin America, Southeast Asia, Africa, etc.

In the last 10 years, the company has created great shareholder value and has become a market leader in almost every segment in which it has been involved. Since then, Nazara has converted into WestBridge Ventures an investment of Rs 22.6 million and a sales consideration of about Rs 1,000.

In the press release, WestBridge Capital Co-Founder Sandeep Singhal said:

WestBridge Capital backed Nitish at a very early stage back in 2005. Since then the company has created great shareholder value and created a market leader. We wish Nitish, Manish, and the entire Nazara group all the very best in their future endeavors.

Sandeep Singhal, Cofounder-WestBridge Capital

We believe gaming will be a prominent form of entertainment and will do well in the next decade. We believe that Nazara is well-placed to leverage the vast available opportunity. We are excited to begin our long-term journey with their goal and vision.

Plutus Wealth Managing Partner Arpit Khandelwal in a statement

India's gaming sector had a market value of around Rs 6.2 billion in 2019 and is expected to grow to over Rs 25 billion in 2024. From this, the mobile game market is expected to continue growing in 2022 with a market value of Rs 3 billion.


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