Quick Take
- Nazara Technologies raised Rs 474 Cr via 1.82 Crore warrants at Rs 260 each in a preferential issue.
- Fidelis Global took the largest allotment; Peter Thiel’s Founders Collective Fund also joined the round.
- Proceeds fund the Rs 918 Cr Bluetile and BestPlay acquisition and Nazara’s global gaming growth.
In This Article
The Nazara preferential issue closed on June 6, 2026, with India’s largest listed gaming firm raising Rs 474 Cr (~$56 Mn) from four investors through 1.82 Crore warrants priced at Rs 260 each, according to Nazara Technologies’ official company disclosure.
Nazara Technologies (BSE: 543280, NSE: NAZARA) plans to channel the bulk of this capital into its Rs 918 Cr ($100.3 Mn) acquisition of Bluetile Games and BestPlay Systems, two Spain-based gaming companies with strong AI-enabled game development. The company returned to profit in Q3 FY26 with a net profit of Rs 8.8 Cr, even as quarterly revenue fell 24% year-on-year to Rs 406 Cr, according to Tracxn data.
StartupFeed Insight
The Nazara preferential issue structure, warrants convertible over 18 months, is a standard tool for listed companies managing large acquisition cycles. What stands out is who is coming in: Fidelis Global with the single largest block, and Peter Thiel’s Founders Collective Fund making a rare India gaming bet. VC analysts and founders in India’s gaming sector should note that Thiel’s entry signals that global capital is beginning to treat India’s casual gaming and AI-gaming market as a serious destination. Watch for Nazara to exercise its call option to acquire the remaining 50% of Bluetile and BestPlay by 2028. That move, if executed, could push the consolidated group’s annual revenue above Rs 3,000 Cr by late 2027. By StartupFeed Desk.
Nazara Preferential Issue: Deal Breakdown and Allotment Details
A preferential issue is a capital-raising method where a listed company sells shares or warrants to a select group of investors at a fixed price, bypassing a public offering. The Nazara preferential issue used this route to raise Rs 474 Cr in one structured tranche from four investors.
| Metric | Detail | Notes |
|---|---|---|
| Total Raised | Rs 474 Cr (~$56 Mn) | 1.82 Crore warrants at Rs 260 each |
| Lead Investor | Fidelis Global (Riambel Capital PCC-RCC1) | 94.85 Lakh warrants, the single largest block |
| Other Investors | S Gupta Family Enterprises (40 Lakh), Plutus Investments (38.46 Lakh), Founders Collective Fund (9 Lakh) | Plutus Investments is the promoter entity |
| Issue Price | Rs 260 per warrant | 12% premium to the March 30, 2026 closing price of Rs 232.35 |
| Upfront Collected | Rs 118.5 Cr | 25% subscription; remaining 75% payable within 18 months for equity conversion |
| Key Dates | Board approved March 30, 2026; allotment closed June 6, 2026 | 10 Lakh warrants dropped after Classic Enterprises became ineligible before allotment |
The 10 Lakh warrant reduction from the original approval is notable. Classic Enterprises, a partnership of Sanjeev Singhal, Gaurank Singhal, and Aditya Singhal, was set to receive warrants worth Rs 26 Cr. They became ineligible before the final allotment, cutting the original 1.92 Crore warrant plan to 1.82 Crore.
About Nazara Technologies
Nazara Technologies (BSE: 543280, NSE: NAZARA) is India’s largest listed gaming and sports media company. Founded in 1999 by Nitish Mittersain (CEO, Joint MD) and Vikash Mittersain (Chairman, MD) in Mumbai, it runs a diversified platform spanning mobile games, esports, gamified early learning, and digital advertising. Key subsidiaries include Nodwin Gaming (esports tournaments), Sportskeeda (sports media), Kiddopia (early learning apps for children), WildWorks (US-based kids’ entertainment), and Curve Games (UK). Nazara listed on BSE and NSE in March 2021 via an IPO (Initial Public Offering, the first public sale of company shares) oversubscribed 175 times, per company disclosures. Key investors include Morgan Stanley and Founders Collective Fund.
How Will Nazara Use Rs 474 Cr from the Preferential Issue?
The primary use of funds from this Nazara preferential issue is to finance Nazara’s largest acquisition to date: a 50% controlling stake in Bluetile Games S.L. and BestPlay Systems S.L., two Spanish gaming companies, for $100.3 Mn (Rs 918 Cr). The deal is being executed through Nazara’s UK subsidiary, Nazara Technologies UK Limited.
Bluetile runs 17 casual mobile games including Yatzy, Mahjong Voyage, Domino Legends, and Spade Stars. The platform has reached nearly 375 million downloads and 22 million MAU (Monthly Active Users, the number of people who use an app in a given month). BestPlay adds 2.2 million MAU through its rewarded engagement platform, which drives user acquisition, retention, and cross-promotion. Together, the two companies reported combined revenue of $153.6 Mn (Rs 1,405 Cr) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $27.7 Mn (Rs 254 Cr) for calendar year 2025, according to company filings.
Bluetile’s integration of AI (Artificial Intelligence) across game development, marketing, and live game operations is a key draw for Nazara. This AI-first approach mirrors how Indian companies across sectors are embedding AI into core business operations. Edtech companies like PhysicsWallah have shown how strategic AI partnerships, such as its tie-up with Microsoft for AI-based certification courses, can deepen a platform’s competitive edge.
Nazara also approved a Rs 4 Cr loan to subsidiary Smaash Entertainment, the indoor sports-entertainment brand Nazara acquired for Rs 125 Cr in June 2025, after Smaash had undergone insolvency proceedings since May 2022.
“This Rs 500 Cr fundraise comes at an important phase in Nazara’s journey as we execute on our most ambitious growth initiatives, including the Bluetile and BestPlay acquisition. This fresh capital positions Nazara to build globally scalable AI-enabled gaming businesses.”
Nitish Mittersain, CEO and Joint Managing Director, Nazara Technologies, in the March 30, 2026 board announcement. The final allotment closed at Rs 474 Cr after one allottee became ineligible.
Is Nazara Technologies Profitable?
Nazara Technologies returned to profit in Q3 FY26 (October to December 2025) with a net profit of Rs 8.8 Cr. This was a recovery from a loss of Rs 33.9 Cr in Q2 FY26. The Nazara preferential issue of Rs 474 Cr comes as the company works to reverse a sustained revenue decline.
Q3 FY26 revenue was Rs 406 Cr, a 24% YoY drop from Rs 535 Cr in Q3 FY25. Net profit also fell 36% YoY from Rs 13.7 Cr in the year-ago period, according to Tracxn data. The revenue contraction partly reflects regulatory headwinds on real-money gaming in India, which affected peer platforms across the sector. Nazara’s diversified model, combining esports, early learning, mobile games, and adtech, cushioned the impact.
For FY25 (full year), Nazara reported annual revenue of Rs 1,720 Cr, according to Tracxn data. The Bluetile and BestPlay acquisition would add a combined ~Rs 1,405 Cr in annual revenue once consolidated, potentially reversing the top-line pressure.
How Does Nazara Compare with Indian Gaming Peers?
Nazara Technologies holds a distinct position in Indian gaming: it is the only listed gaming company in India with acquisitions across India, the US, the UK, and now Europe. Its closest competitors are all private.
| Company | Status | Recent Revenue | Primary Segment |
|---|---|---|---|
| Nazara Technologies | Listed (BSE/NSE) | Rs 1,720 Cr (FY25, Tracxn) | Mobile, Esports, Edtech, Adtech |
| WinZO | Private | Rs 1,055 Cr (FY24) | Casual real-money gaming |
| Dream11 | Private | Est. Rs 4,000+ Cr (FY24) | Fantasy sports |
| Games24x7 | Private | Not publicly disclosed | Rummy, fantasy sports |
The Nazara preferential issue follows a period of rising institutional interest in the company. Morgan Stanley’s Asia Singapore arm bought 28.85 Lakh Nazara shares worth Rs 69.2 Cr via a block deal at Rs 239.80 per share ahead of this round. That pattern of large institutional block purchases is not unique to Nazara. Listed Indian tech peers like Groww also saw Rs 4,750 Cr in block deal activity in 2026, reflecting broad institutional confidence in India’s listed tech stocks.
What’s Next
Nazara holds a call option to acquire the remaining 50% of Bluetile and BestPlay by 2028, valued at 6.6 times trailing EBITDA. If exercised, the total deal could reach ~$314 Mn (~Rs 2,638 Cr). Warrant holders in this Nazara preferential issue have 18 months to convert their instruments into full equity by paying the remaining 75% of the issue price. Watch whether Nazara’s Q4 FY26 results show revenue recovery as the Bluetile deal moves toward closing. Will Europe’s casual gaming revenues finally reverse Nazara’s top-line slide?
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Last updated: June 07, 2026 at 10:30 IST
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by StartupFeed Desk. Published: June 07, 2026. Updated: June 07, 2026. Have a tip? Write to us at editorial@startupfeed.in.
