Nazara Technologies has declared its intention to acquire the remaining 48.42 percent stake of the equity of Mascom in Paper Boat Apps which developed the education gaming app Kiddopia. This enables Nazara to gain full control of Paper Boat Apps by investing a further Rs 300 crore of its total capital.
Image Source: Nazara
Acquisition Details
Nazara Technologies, a diversified gaming and sports media company in the same year 2019, acquired a 51.58% stake in Paper Boat Apps for Rs 83.5 crore. The latest funding of Rs 300 crore was an all-cash deal and the remaining share was from the company’s original promoters Anupam Dhanuka and Anshu Dhanuka. This acquisition forms part of Nazara’s broader plan to expand its gaming segment, which is predicted to contribute to the firm’s revenues in the coming years.
Market Growth and Impact of Kiddopia
Kiddopia is an award-winning subscription-based preschool app for iPad that is created by Paper Boat Apps and focuses on the edutainment model. This ensures that the application provides numerous learning games, videos, and lessons that captivate the young child and help him or her develop. Kiddopia has rapidly grown since the product’s launch, especially in the United States, and is among the leading products that propelled Paper Boat Apps forward.
Thus, the acquisition of the full controlling stake in Paper Boat Apps will enable Nazara to unlock Kiddopia’s full value proposition. Owning all the rights to the app, Nazara is likely to continue adding some resources towards the growth and improvement of Kiddopia to attract more clients and offer a broader range of services. This is in line with the vision of Nazara to be at the forefront of companies dealing with gaming and edutainment businesses across the world.
Strategic Importance for Nazara
The recent Paper Boat Apps acquisition would be a significant step for Nazara Technologies as it signals its efforts in the direction of diversifying the company’s growth-oriented gaming and edutainment assets. The complete integration of Kiddopia will enable Nazara to expand its service offerings into the digital learning space in addition to consolidating its operations around the globe.
The broad range of business activities of Nazara includes gaming, e-sports, and ad tech which makes the company a leader in the digital entertainment space. The acquisition of Paper Boat Apps would have a strong impact on the growth of Nazara’s Revenues and profitability and it would make it a clear market leader.
Future Prospects
The acquisition of Paper Boat Apps ensures that Nazara Technologies is in a better place to spearhead change and expansion in the edutainment business. The company aims to further enrich the content and features of Kiddopia through its knowledge of gaming and digital media to make the platform more appealing and educational to pupils.
Nazara also plans to diversify its portfolio and take Kiddopia to more customers across the world. These expansion plans may be achieved through the company’s balance sheet strengthened by recent fundraising resources. Through its technology and content acquisition strategies, Nazara plans to sustain its competitiveness and create value for its employees, customers, and shareholders.
Conclusion
The purchase of the outstanding stake in Paper Boat Apps is regarded as a major achievement by Nazara Technologies. This strategic approach consolidates Nazara’s position in the gaming and edutainment segments and speaks volumes about its growth-oriented policy. With full control of Kiddopia now, Nazara is well placed to take the operations ahead for further expansion and provide better solutions for the users of the platform and its stakeholders.
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