Nazara Technologies Limited announced on Friday the acquisition of an additional 48.42% stake in Paper Boat Apps for Rs 300 crore, to be paid in cash. This move increases Nazara’s total ownership of Paper Boat Apps to 100%, having purchased the remaining stake from the company’s founders, Anupam and Anshu Dhanuka.
With the full acquisition, Nazara Technologies is considering merging Paper Boat Apps into its operations to leverage the healthy cash flows for reinvestment in growth initiatives. Nazara initially acquired a 50.91% stake in Paper Boat Apps in 2019, marking the company’s initial investment in the game-based educational platform.
In the fiscal year 2024, Paper Boat Apps reported a consolidated revenue of Rs 219.4 crores and maintained a net cash balance of Rs 155.74 crores as of March 2024. This financial performance underscores the strong market position and operational efficiency of Paper Boat Apps.
Nazara Technologies sees significant potential in Kiddopia, the subscription-based preschool edutainment app developed by Paper Boat Apps. The company believes that full ownership will allow it to intensify efforts in the gamified learning sector, unlocking new initiatives and growth opportunities for the app.
Looking ahead, Nazara Technologies aims to expand the Kiddopia franchise through IP licensing, global market expansion, and additional revenue streams such as merchandising, video, and advertising. In line with its strategic growth plans, Nazara had announced in March an allocation of $100 million for mergers and acquisitions over the next 24 months.
