Nazara Technologies to Spin Off Nodwin Gaming, Stake Falls Below 50%

Gaming major Nazara Technologies on Wednesday announced that the platform will be spinning off or “de-subsidiarise” Nodwin Gaming as a separate entity. This came at a time when the esports and events subsidiary is set to raise new funding from some of its existing investors to fuel expansion in this space.

This capital infusion does not involve any sale of shares by the listed gaming company. It will dilute the parent firm’s stake in Nodwin below 50%, resulting in the latter’s reclassification from a subsidiary to an associate company, it said in an exchange filing.

However, Nazara will still remain Nodwin’s largest shareholder. The company board gave nod to the decision at a meeting took place on Wednesday.

"The company, in line with its sharper strategic focus on core gaming IPs, has decided not to participate in the proposed capital raise by Nodwin. Consequently, the proposed capital raise will result in the shareholding of the company in Nodwin falling below 50%," the filing read.

In addition, Nazara has also agreed to relinquish certain controlling and restrictive rights it holds as the majority shareholder. This enables Nodwin to operate with greater financial and strategic flexibility for timely fundraising.

The gaming company first acquired a 55% stake in Nodwin Gaming in January 2018, and most recently bolstered its investment with a ₹64 crore infusion in December 2024, further increasing its stake.

Nazara's Global Gaming Bet

The company has recently invested ₹4.74 crore in two international gaming venture capital funds. In an exchange filing, the company said it has committed $300k (approximately ₹2.6 crore) to Play Ventures Fund III and $250k (around ₹2.14 crore) to F4 Venture Fund I.

These global funds are aimed at early-stage gaming start-ups. It is pertinent to note that Nazara invested the amount in these global funds as a limited partner.

This is not the first investment by Nazara in these funds; the gaming giant has also infused up to $2 million in Play Venture Fund III and up to $250k in F4 Venture Fund I in May 2024.

Play Ventures Fund, headquartered in Singapore, backs gaming start-ups from the pre-seed to Series A stages. Its $140 million Fund III focuses on mobile gaming, AI-driven tools, and gaming infrastructure. So far, the VC firm has invested in early-stage ventures such as Defi Alliance, Cypher, and M League.

Nazara's Acquisition Game

The gaming company has been on acquisition spree in the past year. Recently, it has acquired insolvency-hit sports entertainment start-up Smaaash Entertainment for ₹126 crore. It has also completed the acquisition of UK-based PC and console game publisher Curve Games for ₹247 crore.

In 2023, the company also invested ₹982 crore to acquire a substantial stake in Moonshine Technology Pvt Ltd (MTPL), the parent company of PokerBaazi. The deal comprised a ₹832 crore secondary purchase for a 47.7% stake, along with a ₹150 crore primary infusion through compulsory convertible preference shares (CCPS).

Its other investments include Funky Monkeys, Fusebox Games, WildWorks, Datawrkz, OpenPlay, Publishme, HalaPlay, Paper Boat Apps, etc., as per Tracxn data. The acquisition game started as a part of Nazara's strategy to expand its portfolio through strategic investments in interactive gaming and sports media.