Nazara Technologies Expands Gaming Horizons: Partners with Snax Games with $500,000 Investment!

• ByStartupStory     |    August 16, 2023

Mumbai-based Nazara Technologies has revealed its intent to invest up to $500,000 (approximately Rs 4.15 crore) in Snax Games, an Israeli gaming startup, as part of its strategic move to diversify its gaming and sports media portfolio. The investment will be channeled through Nazara Technologies’ Singapore subsidiary and structured as a Simple Agreement for Future Equity (SAFE), according to a stock market filing by the company. Following this arrangement, Nazara Singapore will be positioned to acquire equity shares in Snax Games at a later date.

Moreover, Nazara Technologies has entered a publishing pact with Snax Games, securing exclusive rights to publish the games within the Indian subcontinent and the Middle East region. The collaboration will be governed by a revenue-sharing model for a period of five years.

Founded by Adam Gal-Ed and Shahar Burg, Snax Games currently operates in stealth mode. The startup’s leadership team boasts an impressive collective experience of over two decades, having played instrumental roles in the development of highly successful games and intellectual properties for prominent gaming enterprises such as Scopely, Plarium, and CrazyLab.

Snax Games is embarking on a journey to craft mobile games in an innovative genre labeled “casual multi-game.” Their inaugural creation, titled “Parties & Puzzle,” is set to be released soon via Nazara’s publishing platform, as outlined in a company statement.

Nazara Technologies, under the guidance of CEO Nitish Mittersain, is strategically expanding its freemium gaming segment by investing in emerging gaming studios, aligning with its broader growth agenda spanning across eSports and adtech.

Having secured the board’s green light, Nazara Technologies is primed to raise up to Rs 750 crore through various equity issuance methods, including qualified institutional placements and preferential allotment, aimed at further fueling its growth initiatives.

A notable feather in Nazara’s cap is its majority stake (71.88 percent) ownership in Nextwave Multimedia, a company specializing in the development of casual and multiplayer mobile games within the sports genre. Among its prominent titles is “World Cricket Championship (WCC),” a mobile-based cricket simulation game boasting over 100 million downloads across mobile platforms.

As the company continues its strategic strides, it recently welcomed Christopher Franklin, a veteran of the gaming industry, as the CEO of Nextwave Multimedia, with founder PR Rajendran assuming the role of board chairman.

While Nextwave Multimedia posted a modest 7.5 percent year-on-year revenue increase for the first quarter of the financial year 2024, accounting for just 2.83 percent of Nazara Technologies’ Q1 revenue, the company remains committed to its broader growth ambitions. At present, Nazara Technologies’ shares are trading at Rs 695.40 on the National Stock Exchange, reflecting a 5.03 percent increase from the previous closing value.

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