Merger and Acquisitions

Nazara Technologies Acquires 48.42% Stake in Paper Boat Apps for ₹300 Crores

• ByStartupStory     |    July 19, 2024

Nazara Technologies Limited has announced the acquisition of an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its promoters Anupam and Anshu Dhanuka for ₹300 crores. The transaction will be paid in cash in tranches.

Paper Boat Apps, known for its popular children’s digital gamified learning app ‘Kiddopia,’ which ranks as the #3 grossing app for children between 2-8 years of age in the United States, is the primary focus of this acquisition. Nazara Technologies had previously acquired a 50.91% stake in Paper Boat Apps in 2019, bringing its total stake to 99.33% with this latest acquisition.

The acquisition aligns with Nazara’s strategic plans to merge Paper Boat Apps into the company at an appropriate time, thereby enhancing its position in the global kids’ gamified learning sector. This move is expected to bring home one of the world’s most popular kids’ gamified learning IPs, ‘Kiddopia.’ By doing so, Nazara aims to leverage the healthy cash flows of Paper Boat Apps to fuel both organic and inorganic growth.

Paper Boat Apps reported a consolidated revenue of ₹219.4 crores and an EBITDA of ₹56.1 crores for FY24. As of March 2024, the company has a net cash balance of ₹155.74 crores.

Nazara Technologies plans to adopt a multi-pronged strategy to drive the growth and expansion of the Kiddopia franchise. This includes IP licensing, global market expansion, leveraging synergies within its network, and exploring additional revenue streams such as merchandising, video, and advertising revenues, in addition to its existing subscription model.

Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, commented, “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.”

Anupam Dhanuka, Promoter of Paper Boat Apps, added, “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. We believe that Kiddopia has significant potential for future growth, and Nazara is well-positioned to elevate it to the next level. We wish Nazara and the entire Kiddopia team the best of luck in their future endeavors.”

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