Why I would go for Nazara Technologies IPO

Nazara Technologies IPO has opened today. For many of us who don't know Nazara, it is a diversified gaming company. It offers interactive gaming, sports media platform and has started to venture out into gamified learning systems. It recently acquired a US-based kids learning company. 

Key Strengths

  • Interactive gaming solutions: Nazara offers multiple interactive gaming solutions including real money games. Interactive gaming experience provides for deploying interactive advertisement solutions. Thus opening a channel for advertisers to intimately connect with their audience and in unique demographics. 
  • Early Stage learning: Nazara's foray into gamified learning solutions with the acquisition of Kiddopia, an award-winning subscription-based early learning system, marks its entry into e-learning for kids, which is a growing market.
  • Sports Media Platform: Nazara is India's leading esports streaming and on-demand esports media content provider. Viewership of esports in India doubled to 17 million in 2020 while the prize money pool grew 25-30%, according to industry estimates.
  • Multiple Business Models: Company has multiple business models and is not stuck on just one: Freemium, subscription-based, esports platforms,  and real money. 
  • Presence across emerging and developed markets: With presence across emerging markets like Africa, Asia, and mature markets like the US. 

Gaming is a high-growth industry. It is set to witness 30%+ CAGR over 2020-2023 due to high mobile penetration, increasing internet penetration, and an increase in the number of gamers. 

If you have kids (or even otherwise) you must have heard these names Motu- Patlu, Chota Bheem, Oggy and the cockroaches. And if you are a sports fan you know about Sportskeeda and Carrom Clash, all of these by Nazara Technologies. Also, Nazara is India's first gaming company going for an IPO. Looks like a good bet.