IIFL’s stake purchase comes after Nazara announced in September 2017 that it would launch an IPO by the end of the fiscal to raise Rs1,000 crore.
Asset management firm India Infoline Finance Ltd’s (IIFL) Special Opportunities Fund has acquired a minority stake worth Rs330 crore in mobile game developer and distributor Nazara Technologies, both companies said in a statement on Friday.
The stake purchase comes after WestBridge Capital-backed Nazara announced in September 2017 that it would take the initial public offering route to raise Rs1,000 crore by the end of the current financial year.
Nazara was founded in 2000 by Nitish Mittersain. He previously worked with the global trade body Mobile Ecosystem Forum as its Board Director.
It has made undisclosed investments in other mobile game development firms including Moong Labs in August 2017 and Truly Social in April 2016.
“We at Nazara welcome IIFL to join us on the exciting journey of tapping into the potential offered by gaming across emerging markets in the Indian subcontinent, South East Asia, Middle East, Africa and Latin America,” Mittersain said in the statement.
“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.
The Indian gaming industry is expected to touch $801 million by 2022 from $543.08 million in 2016, growing at a compound annual growth rate of 6.61%, according to a report by lobby group Confederation of Indian Industry (CII).