Nodwin Gaming, a subsidiary of listed gaming and sports media firm Nazara Technologies, said on April 19 that it is picking up a 35 per cent stake in gaming accessories maker Brandscale Innovations for Rs 10 crore. Nazara disclosed the transaction in a stock exchange filing.
Brandscale began operations under the brand Wings in 2018 and has since become a leading brand in earbuds with a focus on the mobile gaming segment. These products are available on its own website as well as on e-commerce platforms such as Amazon, Flipkart and Myntra.
“Strategic investments like these enable us to achieve our vision of creating successful multi-dimensional gaming and esports strategy,” said Akshat Rathee, Co-founder and Managing Director, Nodwin Gaming.
As part of the investment, Nodwin Gaming Nodwin will subscribe to 567 equity shares of Rs. 100 each in Brandscale. The corporate entity Brandscale Innovations is a newly incorporated entity and has not finished its first annual financial reporting. However, the company as per its MIS is clocking INR 25 Cr ARR basis Q4 of FY22 and is expected to achieve INR 70 Cr of revenue in FY23.
Nazara said it would roll out a custom series of gaming headphones themed around popular Indian gaming and esports talents and influencers under its umbrella and popular esports organisations in the country.
“This investment will hopefully fill in the gap created by the huge demand for customised earbuds and headphones among the gaming and esports community,” Rathee said.
Nazara Technologies recently acquired the Hyderabad-based OpenPlay for about Rs 186.4 crore in August. In August, Nazara acquired OpenPlay, a Hyderabad-based skill gaming company. This acquisition, Nazara stated, was worth Rs 186.4 crore. Last year, the CEO Manish Agarwal said a combination of acquisitions and growth helped Nazara grow in recent years. Today's investment comes a few weeks after the esports leader committed investments in venture funds BitKraft and Griffin Gaming Partners.
Nazara Technologies had posted around a 17 per cent decline in consolidated profit after tax to Rs 14.8 crore in the third quarter ended December 31, 2021. The company had registered a PAT of Rs 17.9 crore in the corresponding quarter last fiscal. Its consolidated revenue from operations during October-December 2021 grew 42.48% to Rs 185.8 crore, compared with Rs 130.4 crore in the year-ago period.