Listed gaming firm Nazara Technology Friday said it has bought additional 48.42% stake in Paper Boat Apps Pvt Ltd, making the company that develops and publishes popular learning app Kiddopia its wholly-owned subsidairy.
Nazara Technology , which had bought 50.91% stake in Paper Boat Apps in 2019, is buying the rest of the stake in tranches from promoters Anupam and Anshu Dhanuka for Rs 300 crore.
Nazara Technology, which plans to merge Paper Boat Apps into the company, aims to drive growth and expansion of the Kiddopia franchise through IP licensing and integration, global market expansion, and additional revenue streams including merchandising, video, and advertising revenues, it said.
“We believe an IP such as Kiddopia has immense potential that can be unlocked through several new initiatives and acquiring full ownership underscores our commitment to intensifying our efforts in the gamified learning sector,” said Nitish Mittersain, chief executive and joint managing director of Nazara Technologies.
Kiddopia, one of the top apps for 2-8 years old in the US, provides subscription-based edutainment through the application. The company offers interactive games and activities that foster cognitive development, self-expression and also social-emotional learning in early age Kids.
The company reported a flat turnover of Rs 219 crore in FY24, with net profits of Rs 46.5 crore. It has Rs 155.74 crore in cash and cash equivalents.
“Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara. We believe that Kiddopia has significant potential for future growth, and Nazara is well-positioned to elevate it to the next level,” said Dhanuka.
Mumbai-based Nazara had said in March it was allocating $100 million (Rs 830 crore) for merger and acquisition opportunities.
The company, founded in 2000, offers a diversified gaming and sports media platform with presence in India and across global markets such as Africa and North America. It has offerings across interactive gaming, e-sports, adtech and gamified early learning ecosystems.
The company is backed by investors such as Nikhil Kamath, ICICI Prudential MF and Plutus Wealth Management. In October 2021, Nazara had raised Rs 315.3 crore.
It had raised Rs 250 crore ($30 million) earlier this year from new and existing investors as a part of its Rs 750-crore fundraising plan, to deploy to its warchest.
In January, founder Nitish Mittersain said the company had Rs 1,500 crore in consolidated cash reserves to pursue both organic and inorganic growth opportunities.
It houses multiple brands under the parent entity with a ‘Friends of Nazara’ strategy, has stakes in brands such as Nodwin Gaming, Sportskeeda, Kiddopia Animal Jam, World Cricket Championship and CarromClash among others.
