Nazara Technologies

IPO was OFS. So no fresh funds were raised in the process of IPO

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Its all Offer For Sale. So, no money raised for operating purposes to run the business but partial/complete exit for then existing investors

Details from IPO prospectus.

Issue Size 5,294,392 Eq Shares of ₹4
(aggregating up to ₹582.91 Cr)
Offer for Sale 5,294,392 Eq Shares of ₹4
(aggregating up to ₹582.91 Cr)

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I had a friend quit from nodwin gaming and join jio games, is jio games also into acquiring IP and streaming like Nodwin gaming

“The phenomenon of play-to-earn and earn through NFT or token is going to be the next growth for the gaming industry," said Manish Agarwal, CEO, Nazara Technologies

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“NFTs are exciting because they fulfil a number of demands. For instance, people play WCC for years, some also find it as part of their childhood. Over the period, these users have accumulated a lot of assets and now for it to be used, they share their login and password with other users. NFTs can streamline this along with other use cases,” said P.R. Rajendran, founder and CEO of Nextwave Multimedia which runs WCC.

"This play-to-earn model will be a game changer for the Indian companies as it will give a reason especially to the new users, a reason to play. Both the real-money and the non-real-money segments will be benefited but the key is how these companies will integrate these NFTs into the game,” said Manish Aggarwal, CEO of Nazara Technologies.

In the six months to a year, a slew of gaming NFTs will be launched in India, he added.


Aside, there was an investor meet planned with Union MF and Mirae MF yesterday.

Discl - Invested

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The Indian gaming industry is estimated to clock $5 billion by 2025: BCG-Sequoia India report - The Indian gaming industry is estimated to clock $5 billion by 2025: BCG-Sequoia India report - The Financial Express

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Nodwin Gaming can turn out to be a gem for Nazara’s future plans and growth

Good to see some of quality Media houses start paying attention to gaming universe of digital ecosystem, and try to understand the huge runway.

This is a 7K cr market cap company in gaming sector which has potential to be the biggest contribution in overall entertainment sector( gaming is projected to be bigger than rest of all entertainment put together in a decade), they are leaders in India, ME and Africa. Again a very high growth engine of 50%+ is a possibility for long times.

Futile to do valuations on any traditional models, would be interesting as we have Zomato, Nykaa, Policybazaar getting valued 25X+ sales on similar rev growth profiles.

Nazara could do 550-600 Cr revenue in FY 22. As long as they can deliver 40-50% growth don’t see a reason as to why they should be valued differently, if anything they are leaders in the space.

Invested

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Good points. I think we will have to monitor the pace of their acquisitions closely, as in a hugely disruptive industry like gaming, they will have to keep acquiring companies to fuel growth.
Disclosure: Invested.

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Nazara Technologies - Initiating Coverage - 30 Dec 21.pdf (1.2 MB)

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Lots of consolidation going on in Gaming industry. Just when the above :point_up: biggest ever deal ( $12.7 billion) happened, a much larger one announced within a week,

The following has been announced just few hours back.

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flat numbers in sequential Q3FY22, though revenues are increased to good extent but, dip in the profit at sequential basis.

Investor Presentation look ups - YOY



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Thank you @GARP_niveshak for starting this thread and providing detailed insights. Thanks everyone else for adding to it. My two cents:

  1. I am currently studying Metaverse use cases (for something completed unrelated) and found that gaming companies are actually leading here in early use cases compared to giants like FB and others. It was an eye opener for me.
  2. Whichever way we look at Metaverse (no one has any concrete view of it as yet), it is going to be hyper addictive … which in a way is sad that people will end-up spending more time in virtual world then real world, but at the same time it is also very exciting as it opens a completely new way of experiencing things
  3. Current use cases of Metaverse are constrained due to lower quality of graphics and processing power on the distribution side…With 5G on the horizon and hyperscalers continuing their upward trajectory, this will be fixed in next 3-4 years giving a fillip to Metaverse and with it a hyper transformed gaming experience
  4. With Web3 slowly expanding (it is still very small), and NFT adoption by gaming industry titans, we can see a big bump in IAP in near future. It will mean increased spending (at micro level) by users and It will also make people stick more with their games as sense of ownership kicks in and also the idea of generating money from their assets.

All this is of course in future and in no way implies it will translate directly to hyper growth for Nazara. Just sharing my thoughts and learnings if it adds value to the discussion so far.

Thanks again everyone for their inputs. Great thread to learn and stay updated.

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Hi, how is low quality graphics, processing power related to 5G, which is high speed communication tech?

Disc:
Invested in Qcom through ESPPs and RSUs.

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2 points:

  1. I think you missed the words “hyperscalers continuing their upward trajectory” in that sentence, which is expected to boost computing power and help improve graphics processing.
  2. There is only so much high quality graphics you can push through a 4G data connection. If we want real life like experience in virtual 3D world (one of the characteristics of Metaverse is that it will be more 3D), graphics quality has to be order of magnitude better than it is today

Hope that clarifies

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WiFi will give a guaranteed high throughput than 5G.
5G may not work well indoors.
Hence why I was asking why metaverse is dependant on 5G.

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Nazara To Invest $ 40 Lkh In Griffin Gaming Partners in Next 3 years

Griffin Gaming Partners is a big deal in the Gaming VC fund circle.

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A question to those who are seriously invested in Nazara, How do you see the current valuation?
Of course it is very early days still and stock will trade at a premium as long as business verticals continue to gain market share, but still how does one get some comfort in valuations. In terms of comparable companies with Global footprint, I am not sure if we can consider Tencent etc. but those aren’t as richly valued either.

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Going strictly by Current market conditions there is a lot of negatives being priced in :
Namely

  • Extreme pessimism against new-age tech companies incl Nazara
  • No in-person Gaming events due to covid and lockdowns causing one of the revenue stream to not fire on all cylinders. Nodwin will generate a lot of revenue once all the events go in-person Vs online.

Is it a good time to buy, yeah ofcourse if you have studied well about the business economics. Nazara should get scarcity premium as gaming is proper job aveneue for many youngsters.

Jio Games is also doing well and Reliance is going to put a lot of effort and money into the ecosystem which is going to be beneficial for Nazara as well.
Plus kidopia is something Nazara has cracked, which should auger well in the coming years as more and more parents become concious of the online gamified learning concept.
In the early 90’s board games were a great thing to teach a kid, now a days its taken up by gamified learning in a better way.

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