SBI Mutual Fund Invests Rs.410 Crore, Post Nithin Kamath's Rs.100 Crore Investment
SBI Mutual Fund is investing another Rs 410 crore in Nazara Technologies. According to a stock exchange filing on Sept 7, the investment will be routed into the listed gaming and media firm via three schemes of SBI Mutual Fund: SBI Multicap Fund, SBI Magnum Global Fund, and SBI Technology Opportunities Fund. The news comes just days after the company received a Rs 100 crore investment from Zerodha co-founder Nikhil Kamath.
While SBI Multicap Fund is investing about Rs 200 crore into the company, SBI Magnum Global Fund and SBI Technology Opportunities Fund is investing about Rs 120 crore and Rs 90 crore respectively. In all, SBI Mutual Fund will hold 7.83% stake in the gaming firm post the investment. The two tranches of fundraise is part of the planned Rs 750 crore investment that the company aims to garner.
According to the company, a portion of the funds will be used to make strategic acquisitions. "India's largest domestic mutual fund investing in Nazara is an important milestone for us in this two-decade-long journey," said CEO Nitish Mittersain.
In FY22, India's gaming market generated $2.6 billion in revenue, which is expected to rise to $8.6 billion by FY27. According to Lumikai, a gaming and interactive media focused venture fund, the industry's growth is being fueled by a rapidly growing gamer base, higher conversion to paid users, and the increasing sophistication of the Indian gamer.