Nazara Technologies IPO: Information Analysis

Nazara Technologies is a leading diversified gaming and sports-media platform company, having its presence in India and developed global markets, such as Africa and North America. The company provides services across various categories comprising: Gamified early learning (39.2 per cent of revenues for the six month period ending September 30, 2020): The company entered this space through the acquisition of Kiddopia, its flagship gamified early-learning app, in FY20. The company strives to deliver an immense learning experience to early learners through gamification. E-sports (31.2 per cent of revenues): E-sports has emerged as the largest disruptor in the global traditional sports market. In FY18, the company acquired Nodwin Gaming - a market leader in the segment with a market share of 80 per cent in the Indian e-sports market. The company also owns Sportskeeda.com, which is the largest e-sports news website in India, with a focus on content across various e-sports and traditional sports such as WWE, cricket and soccer, among others. Telco subscription (21.3 per cent of revenues): Under this segment, the company offers over 1,021 android games targeting mostly first-time users. The company offers this service in associations with telecom operators. Freemium and real-money gaming: These include free-to-play sports-simulation games. Also, following its acquisition of HalaPlay Technologies, the company is also participating in fantasy sports. Besides, it is involved in the real-money gaming business in Kenya. Strengths Leadership position with a diversified portfolio: The company offers premium and popular gaming solutions across the e-sports and mobile-gaming platforms in India, with a significantly high market share. Rise of the gaming industry: Once considered as a form of escapism, the gaming industry has emerged as one of the largest and fastest-growing segments within the media and entertainment sector. Increasing penetration of smartphones: The penetration of smartphones in India is expected to reach 90 per cent by 2023, thereby leading to a significant rise in the numbers of mobile gamers. Rise in Gen-Z population: The digitally mature Gen-Z population is more involved in gaming, owing to their familiarity with today's high-end techno