Nazara Technologies Acquires Paper Boat Apps to Expand Kiddopia Globally

Nazara Technologies announced the acquisition of an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its promoters Anupam and Anshu Dhanuka for a sum of Rs 300 crore to be paid in cash in tranches to take its ownership in PBA to 100%. This strategic move is aimed at accelerating the global growth of Kiddopia, a popular children’s educational app.

Key Details of the Acquisition

Nazara Technologies, a prominent player in the gaming and esports industry, will invest INR 300 crores in cash to acquire the remaining shares from Paper Boat Apps’ promoters, Anupam and Anshu Dhanuka. This acquisition aligns with Nazara’s vision to integrate core gaming intellectual property (IP) and expand its footprint in the global market.

Kiddopia: A Leading Educational App

Kiddopia, developed by Paper Boat Apps, is a top-grossing app for children aged 2-8 in the United States. Since Nazara’s initial investment in 2019, Kiddopia has seen substantial growth, becoming a beloved educational tool among young learners worldwide. In the fiscal year 2024, Paper Boat Apps reported a consolidated revenue of Rs 219.4 crore and an EBITDA of Rs 56.1 crore, showcasing the app’s strong financial performance.

Strategic Benefits and Future Plans

Nazara Technologies plans to merge Paper Boat Apps into its operations, capitalizing on Kiddopia’s successful IP. This integration is expected to enhance cash flows, which will be reinvested for both organic and inorganic growth opportunities. The strategic expansion of Kiddopia will involve:

1. IP Licensing and Integration: Leveraging Kiddopia’s established brand to explore new revenue streams such as merchandising, video content, and advertising.
2. Global Market Expansion: Strengthening Kiddopia’s presence in international markets through targeted marketing and strategic partnerships.
3. Enhanced Synergies: Utilizing Nazara’s extensive network to create deeper synergies and drive growth.

Leadership Insights

Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies, emphasized the immense potential of Kiddopia. He stated, “Acquiring full ownership underscores our commitment to intensifying efforts in the gamified learning sector. Nazara is becoming the go-to platform for entrepreneurs in gaming, sports, and entertainment to scale up and generate liquidity.”

Anupam Dhanuka, one of the promoters of Paper Boat Apps, reflected on the journey of Kiddopia and its future with Nazara. “Kiddopia has scaled tremendously since Nazara’s majority acquisition. We believe that with Nazara’s support, Kiddopia will achieve new heights and continue to be a favorite among children and parents globally.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.