Nodwin Gaming to raise USD 28 mn in fresh funding

New Delhi: Online gaming and esports firm Nodwin Gaming has signed an agreement to raise USD 28 million (about Rs 232 crore) from new and existing investors.

All existing investors of Nodwin Gaming -- Nazara, Krafton and JetSynthesys will also join new incoming investors in this funding round. Sony Group and Innopark (India) Private are the new investors in the funding round.

"Nodwin Gaming, a material subsidiary of Nazara Technologies Limited, has signed definitive and binding documentation to raise USD 28 million from new and existing investors," the company said in a statement.

Nazara expects fundraising to complete in about 120 days.

Nodwin has raised the fund at a 2.7 times higher valuation compared to its last funding round in March 2021.

The company last raised USD 22 million in a funding round led by South Korean gaming company Krafton at an enterprise valuation of USD 135 million (about Rs 988 crore) valuation in March 2021.

The fresh funding round values Nodwin at USD 325 million (about Rs 2,624 crore) pre-money and USD 349 million post-money raise.

"Majority of these funds will be channelised towards growing the Gaming and esports ecosystem of Nodwin by expanding and incubating newer IPs, growing the emerging market footprint of Nodwin and for strategic acquisitions that drive value to the network," the statement said.

Post completion of the transaction, Nazara Technologies' stake will come down to 52.71 per cent from 54.52 per cent at present.

The deal follows approval from Nodwin board for raising Rs 197.20 crore in cash through private placement and secondary sale of shares worth Rs 34.76 crore by the founding shareholders to Nazara.

"Nodwin has further informed that they have executed a Share Purchase and Share Subscription Agreement (Agreement) on May 18, 2023, with Sony Group Corporation, Krafton Inc, Jetsynthesys Private Limited (Founder investor), the Company, Innopark (India) Private Limited, Good Game Investment Trust, and Akshat Rathee and Gautam Virk for issuance of up to 1,231 equity shares...aggregating to Rs 197,19,03,201 for cash on private placement basis to the proposed investors," the filing said.

The funding round also includes the purchase of 217 equity shares of Rs 10 each at a consideration of up to Rs 34.76 crore by Nazara Technologies from the founding shareholders.

Rathee said Nodwin has been able to exhibit a revenue compound annual growth rate of 68 per cent over the last two years in a tumultuous market.

"We have managed this growth while being able to maintain profitability in our business and gain a globally dominant position in mobile esports while delivering shareholder value.

"As we migrate to the next phase of our evolution, we would like to build a global company that is a significant thought leader and the largest player in the emerging market space," he said.

The company is actively looking for acquisitions in the developing part of Europe, developing part of Africa-Nigeria, Kenya etc, South East Asia--Vietnam, Philipines, Indonesia as well as Brazil and Peru.

"This is a time when there are a lot of great companies, which have been undervalued. I feel this is the best time for mergers and acquisitions," Rathee said.