Group 1: Market Overview - India has approximately 442 million online gamers and leads global download numbers, yet the conversion rate of paying users remains low, with revenue only 1% of that in the US despite double the downloads [1] - In 2024, India is projected to reach 8 billion game downloads, significantly outpacing the US, but its revenue is still underwhelming compared to other countries like Malaysia [1] - Local gaming giant Nazara Technologies believes that the Indian market will surprise investors in the next five years, suggesting that many companies are missing out on significant opportunities [1] Group 2: Company Profile - Nazara Technologies, recognized as one of the top 50 mobile game companies globally, achieved over 10 billion INR in annual revenue and over 1 billion INR in EBITDA last year [3] - The company has grown through aggressive acquisitions rather than relying solely on the local gaming industry, leading to a diversified platform valued at approximately 1.5 billion USD [4] Group 3: Revenue Streams - Nazara's revenue for the fiscal year 2025 was 16.2 billion INR (approximately 1.3 billion RMB), a 43% increase year-on-year, with gaming contributing 31% of total revenue but 55% of EBITDA [4] - Key revenue-generating games include "Kiddopia," which generates around 2 billion INR annually, and "Animal Jam," which surpassed 1 billion INR in revenue for the fiscal year 2025 [5][11] Group 4: Strategic Acquisitions - Nazara has made significant acquisitions, including a majority stake in the developer of "Kiddopia," which has seen its revenue quadruple since the pandemic [7] - The company also acquired the developer of "Love Island," which has seen a resurgence in revenue, demonstrating the effectiveness of leveraging popular IPs [11] Group 5: E-sports and Advertising Technology - The e-sports segment is Nazara's largest and fastest-growing area, generating 7.6 billion INR in fiscal year 2025, primarily from sponsorships and media rights [16] - The advertising technology segment, bolstered by the acquisition of Datawrkz, plays a crucial role in user acquisition and monetization, enhancing the overall ecosystem [19] Group 6: Growth Strategy - Nazara aims for a valuation of 10 billion USD, relying heavily on acquisitions and strategic partnerships to expand its portfolio across gaming and Web3 sectors [22] - The company has established a 100 million USD acquisition fund to pursue high-growth targets, with over 1 billion USD spent on acquisitions to date [22] Group 7: Challenges and Competition - Nazara faces challenges in balancing autonomy for acquired companies while ensuring strategic alignment, as well as navigating regulatory uncertainties in India [25][26] - The company competes with global giants in various sectors, including e-sports and educational gaming, which adds pressure to maintain growth and profitability [26]