IIFL fund picks minority stake in gaming firm Nazara

Asset management firm India Infoline Finance Ltd’s (IIFL) Special Opportunities Fund has acquired a minority stake worth Rs 330 crore in mobile game developer and distributor, Nazara Technologies.

“We at Nazara, welcome IIFL AMC to join us on the exciting journey of tapping into the potential offered by gaming across the emerging markets in the Indian subcontinent, South East Asia, Middle East, Africa and Latin America,” said Nitish Mittersain, Managing Director & Founder, Nazara Technologies.

The stake purchase comes after WestBridge Capital-backed Nazara announced in September 2017 that it would take the initial public offering route to raise Rs 1,000 crore by the end of the current financial year.

IIFL Special Opportunities Fund mainly invests in companies before or during their IPOs. Mittersain acknowledged that the investment could be a precursor to the gaming firm’s proposed IPO. “We are looking at our options, it might lead to an IPO,” Mittersain said.

“The gaming industry is expected to see growth in India and emerging markets. With its strong leadership and highly motivated team, Nazara is in a position to capture this growth and has the potential to emerge as a leading player in the mobile gaming industry across emerging markets. We are happy to partner with the company in this journey and be a part of their growth story,” Prashasta Seth, chief executive of IIFL Asset Management Ltd, said.

As of September 2017, Nazara crossed over 34 million downloads with over 10 million monthly active users across its network of games on Google Play Store, claims the company.