Nazara Technologies Sees 4% Return on $2.2 Million Investment in Gaming Startup Stan

STAN’s mobile-first strategy and prominence on community engagement are in line with Nazara's goal of setting up itself as a leading force in the worldwide esports ecosystem.

On September 12, shares of Nazara Technologies Limited rose nearly 5 percent to Rs 1,008 in early trading following the announcement that its subsidiary, Nazara Dubai, acquired a 15.86 percent stake in the gaming community startup Stan for $2.2 million (Rs 18.4 crore) in cash through a secondary transaction with current shareholders.

"STAN’s mobile-first approach and focus on community engagement align perfectly with our vision to become a leading player in the global esports ecosystem. This acquisition allows us to expand our reach while empowering content creators and fostering a stronger gaming community," Nitish Mittersain, CEO of Nazara Tech, said.

Stan comes up with a platform where creators can construct and devise communities, permitting the users to influence their favorite gaming creators or celebrities through digital classics, chat or audio rooms, and exclusive celebrity communities, while also fostering user-to-user interaction.

Gamers can collect, play, and trade digital collectibles, including NFTs of their favorite esports players and content creators. These NFTs offer chances to win both physical and virtual experiences, such as meetups or matches with favorite players, boot camp tours with esports teams, signed merchandise, and interactions on social media.

This marks the company’s second accession in a short period. Nazara Technologies purchased 5,157 worth shares, amounting to 48.42 percent of Paper Boat Apps Private Limited, from its founders, Anupam Dhanuka and Anshu Dhanuka. The deal, valued at Rs 300 crore, involved an initial payment of Rs 225 crore. As a result, Paper Boat is now a wholly-owned subordinate of Nazara Technologies, while Kiddopia Inc., a Paper Boat subsidiary, remains a step-down subsidiary.

As of around 9:20 am, Nazara Tech shares were trading at Rs 1,003, up 3.8 percent from the previous close on the NSE. The stock has accomplished well recently, gaining 14 percent over the past three months.