Nodwin Gaming Invests Rs. 33 Crore In German Firm Freaks 4U Gaming

Through a convertible note, NODWIN Gaming, an esports-focused Nazara Technologies subsidiary, has made an enormous investment of INR 33.26 crore in Freaks 4U Gaming GmbH, a company based in Germany.  The filing stated 

"Nodwin Gaming International Pte. Ltd. (“Nodwin Singapore”), a wholly owned subsidiary of Nodwin Gaming Private Limited (“Nodwin”), material subsidiary of the company, has on December 28, 2023 signed agreements for subscribing to a Convertible Note of Freaks 4U Gaming GmbH, at a consideration of EUR 3,600,000 (equivalent to approximate INR 33.26 Cr), to be paid in cash."

Although NODWIN Gaming and Freaks 4U Gaming GmbH are both leaders in gaming and esports marketing services, their specialties are PC and mobile games. While Freaks 4U Gaming GmbH is the industry leader in developed areas, NODWIN Gaming is the main player in emerging regions such as India. NODWIN hopes to increase its expertise with PC gaming with this investment.

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Nazara To Invest Rs 33 Crores in Freaks 4U Gaming GmbH

It is expected that the partnership between NODWIN Gaming and Freaks 4U Gaming GmbH would increase their appeal to international consumer brands and game developers by providing a smooth operation in both developed and emerging regions. Nazara Technologies added that the convertible note will eventually be converted into 7,366 shares if the conversion option is exercised. The terms and circumstances of the convertible note will determine the proportion of ownership. During their early phases, businesses frequently utilize convertible notes, a sort of loan instrument, to raise financing. They incorporate investors providing funds to a business to turn them into stock at a later date, sometimes during the following equity financing round.

NODWIN Gaming had stated earlier in the year that it aimed to seek $28 million (INR 232 crore) from both new and existing investors as part of a strategic investment round. The company wants to use the extra funding to grow, develop new intellectual property, and explore new markets. Furthermore, NODWIN Gaming has been aggressively seeking expansions in addition to this investment. In a recent all-cash transaction valued at $1.3 million, it purchased a 51 percent share in media-tech firm Branded. For INR 10.01 crore last year, the company bought a 35% share in the gaming accessories brand Wings, and in January 2022, it purchased 100% ownership in the licensed D2C brand Planet Superheroes.

The parent business of NODWIN Gaming, Nazara Technologies, recently raised an additional INR 510 crore from investors, including Nikhil Kamath of Zerodha and the SBI Mutual Fund. According to CEO Nitish Mittersain, the company intends to use the additional funding to support game development companies that can create high-caliber titles for both the Indian and international markets.