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In a significant development within the gaming and esports marketing sector, NODWIN Gaming, a subsidiary of Nazara, has invested INR 33.26 crore (€3.6 million) in Freaks 4U Gaming, a Germany-based entity, through a convertible note. This strategic collaboration brings together two industry powerhouses – NODWIN, known for its strong presence in mobile esports in emerging markets, and Freaks 4U Gaming, a formidable force in PC gaming with a substantial foothold in developed markets.
As reported byInc42, the investment transaction, facilitated by Nodwin Gaming International Pvt. Ltd., involves a Convertible Note valued at EUR 3,600,000. Nazara Technologies has disclosed that the convertible note, when converted, will result in 7,366 shares at a later date, with the ownership percentage subject to the terms and conditions outlined in the convertible note.
Convertible notes, commonly utilized by startups to secure early-stage capital, entail lending funds to a startup with the intention of converting it into equity during subsequent financing rounds. This strategic initiative aligns with NODWIN Gaming's overarching plan to raise $28 million, as previously disclosed, to support expansion, foster new intellectual properties, and explore untapped markets.
Operating under the umbrella of Nazara, Nazara NODWIN Gaming has actively pursued growth opportunities, evident in its acquisition of a 51% stake in media tech startup Branded, a 35% stake in gaming accessories brand Wings, and the complete ownership of the licensed merchandising direct-to-consumer brand Planet Superheroes. These strategic investments solidify NODWIN Gaming's position as a key player in the dynamic gaming and esports ecosystem.
With Nazara successfully raising fresh capital amounting to INR 510 Crore from investors such as Nikhil Kamath of Zerodha and SBI Mutual Fund, the gaming conglomerate is well-positioned to utilize these funds to support gaming studios capable of developing high-quality games tailored for both Indian and global audiences. As NODWIN Gaming and Freaks 4U Gaming unite, their collaborative efforts are expected to enhance their appeal to global consumer brands and game publishers, facilitating seamless operations across emerging and developed markets.
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