Nazara Takes Over Paper Boat Apps with an Additional INR 300 Cr Investment Paper Boat Apps' promoters, Anupam and Anshu Dhanuka, sold their 48.42% stake to the gaming and esports company.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Nazara Technologies Limited announced that it has acquired an additional 48.42% stake in Paper Boat Apps for INR 300 crore in cash. This acquisition elevates Nazara's ownership in the company to a complete 100%, marking a pivotal moment in its strategic growth plan.
The stake was purchased from Paper Boat Apps' promoters, Anupam and Anshu Dhanuka, culminating in Nazara's complete control over the innovative company.
This move is not just about ownership but also about strategic growth. Nazara Technologies is considering merging Paper Boat Apps into its operations, a step that would allow it to leverage healthy cash flows from Paper Boat Apps for further growth initiatives.
Prior to purchasing the game-based educational delivery platform in 2019, it owned a 50.91% share of it.
According to the company, Paper Boat Apps had a net cash balance of Rs 155.74 crore as of March 2024 and reported consolidated revenue of Rs 219.4 crore for FY24.
Nazara's CEO and Joint Managing Director, Nitish Mittersain, expressed his enthusiasm about the acquisition, emphasising the untapped potential of Kiddopia. "At Nazara, 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," he stated.
Kiddopia is a subscription-based preschool edutainment app developed by Paper Boat Apps.
Anupam Dhanuka, promoter of Paper Boat Apps, reflected on the journey, saying, "It has been an incredible journey developing Kiddopia into a beloved app for children and parents worldwide. Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara."
Nazara's vision for Kiddopia extends beyond its current success. The company plans to expand the Kiddopia franchise through IP licensing and integration, aiming for global market expansion. Additionally, Nazara sees potential in diversifying revenue streams, including merchandising, video content, and advertising revenues.
This acquisition aligns with Nazara's broader strategy, as the company had announced in March its intention to allocate USD 100 million towards strategic mergers and acquisitions over the next 24 months.
