StartupTalky

Tag: Gaming

  • MPL Expands Its Gaming Tech Stack by Purchasing Shares in CloudFeather

    In an effort to strengthen its position in the gaming industry, gaming startup Mobile Premier League (MPL) announced on December 10 that it has acquired a sizeable investment in CloudFeather Games, a provider of gaming development tools. The business did not, however, provide the transactions’ financial details. Through this agreement, MPL hopes to employ CloudFeather’s gaming infrastructure technologies and provide its players with cutting-edge gaming experiences. Additionally, it will increase its technological capabilities by utilising CloudFeather’s technology stack, which includes wallet integration technologies and server infrastructure. MPL’s chief operating officer, Namratha Swamy, stated, “CloudFeather’s technical expertise will further strengthen our product roadmap and help us deliver even more innovative gaming experiences to our community of 120 million users worldwide.”

    Joining MPL is an exciting phase for CloudFeather’s team, according to Romi Chandra, co-founder and CEO. CloudFeather has long appreciated MPL’s scope and vision, and it is excited to support its further development and innovation. In order to give millions of players access to the newest gaming technologies, the two companies work together to push the limits of skill-based gaming.

    Developing a proprietary high-performance gaming infrastructure, creating scalable shared game servers, improving wallet integration systems, creating sophisticated liquidity management solutions, and creating an innovative SDK for game monetisation and engagement are just a few of the technological advancements that CloudFeather has led to date. The business has made it possible for gaming platforms to enhance user experience, operations, and performance using these solutions.

    MPL’s India Revenue Surged 35%

    M-League, the parent company of MPL, reported a 22% increase in operational revenue from the previous fiscal year to $127.9 million in FY24. In the reviewed year, MPL’s income in India increased by 35% to around $88 million. MPL is an esports and skill gaming platform that was founded in 2018 by Sai Srinivas Kiran G and Shubh Malhotra. On its mobile app, it provides over 60 games in categories such as board games, esports, daily fantasy sports, quizzes, and casual games. According to the firm, it serves over 120 million customers in North America, Europe, and Asia. This is not the first time MPL has acquired companies in the gaming sector. The gaming giant purchased Berlin-based GameDuell in 2022 in order to grow its business in important international markets.

    Testing the International Market

    Additionally, MPL established Mayhem Studios, its mobile game production division. Interestingly, Mayhem recently raised an undisclosed sum of money from Lumikai. With the release of its app in Nigeria in 2023, the business also made its debut in the African gaming sector. In order to launch its games in Africa, MPL teamed up with Carry1st, a mobile gaming publisher located there. Even though MPL has been actively growing both domestically and internationally, there have been setbacks along the way. Over 10% of the company’s employees had to be let go in 2022. It also left the Indonesian market at a similar time and stopped offering streaming on its app.

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  • Nazara and Lysto Collaborate to Enhance Web3 Play

    Nazara Technologies, a publicly traded gaming company, said that it has paid $500K (about INR 4.17 Cr) to acquire an 8.5% share in the Web3 gaming platform Circle of Games (COG). According to a separate announcement from Circle of Games, the investment was a part of a bigger funding round worth $1 million (about INR 8.3 crore), in which Swiss non-profit The Hashgraph Association also participated. Nazara said in a regulatory filing with the bourses on April 17 that its business in Dubai had purchased 1,273 class A1 preferred shares of Circle of Games’ parent company, COG Holdings Global Ltd.

    As part of the agreement, Nazara Dubai will also be granted 891 more “advisory shares” in the business. The listed gaming giant will own 8.5% of the Web3 gaming company overall. According to Nazara, the cash-only agreement would be carried out in one or more installments.

    Collaboration will Provide Win-Win Situation for Both the Firm

    According to the firm run by Nitish Mittersain, the acquisition of the stake will enable it to increase its footprint in the Web3 and blockchain gaming markets. The agreement will also enable the two businesses to take advantage of team and technology synergies.  According to a statement from Circle of Games, the $1 million will be used to develop platform capabilities, expedite its go-to-market (GTM) strategy, and increase its presence in the US, EU, Africa, the Middle East, and Asia. A portion of the funds will also be used to diversify its gaming offerings. According to Rabilal Thapa, cofounder and CEO of Circle of Games, “Nazara will provide strategic guidance, support, and access to its extensive network to help the company grow.”

     This partnership goes beyond simple financial investment. “We are happy to further empower the global Web3 gaming industry through our co-investment with Nazara Technologies in Circle of Games, the leading Web3 multi-gaming app that aims to onboard the next billion users onto the Hedera network,” said Kamal Youssefi, president of the Hashgraph Association, in a statement regarding the fundraising effort. Thapa, Rajeeb VC, and Rohit Tiwari founded the Web3 casual multi-gaming platform Circle of Games in 2022. The company, which is based in the British Virgin Islands, says it has over 2.5 lakh Android users enrolled and plans to add 100 million users to its Web3 gaming platform by 2026. Additionally, it makes use of its alliances with Web3 initiatives and ecosystems, including Chingari and Solana, which provide it access to a gaming community of over 500 million members across more than 50 countries.

    Nazara on Acquisition Spree

    By the end of June 2024, Circle of Games intends to introduce its native coin ($COG) in an effort to attract more users to the site. The development coincides with Nazara’s acquiring spree. The gaming giant announced last month that it had set aside $100 million for mergers and acquisitions over the next two years. In February of this year, the company purchased Ninja Global FZCO (Ninja), a gaming and esports production company, as part of this. Before that, it had invested two tranches of funds in Freaks 4U Gaming, a full-service gaming and esports agency based in Germany. NODWIN Gaming, the listed giant’s esports business, also revealed in January that it had paid INR 55 Cr in cash and stock to acquire 100% ownership in Comic Con India.

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  • The Board of Nazara Technologies Authorises Five Investments Totalling INR 196 crore

    Listed gaming giant Nazara Technologies has announced plans to continue its acquisition binge by investing in kids’ play centre company Funky Monkeys and edtech Learntube.ai, as well as acquiring a larger stake in three of its subsidiaries: Nodwin, Sportskeeda’s parent company Absolute Sport, and adtech Datawrkz. The investment will strengthen “its position in the gaming and entertainment ecosystems,” according to a statement from Nazara.

     Nazara will subscribe for optionally convertible preference shares in order to invest INR 64 Cr in its esports subsidiary Nodwin. This is intended to help the gaming subsidiary grow and improve its intellectual property. It is important to remember that Nodwin is one of Nazara’s main sources of income.

    Details of Further Investments

    Nazara announced that it would spend INR 69 Cr to buy shares that resulted from Sportskeeda employees exercising their ESOPs. This will make it a completely owned subsidiary and raise its ownership position in Absolute to 100%. By subscribing to its mandatory convertible cumulative preference shares (CCPS), the business would spend INR 15 Cr in its adtech subsidiary. In 2022, it purchased a 33% share in Datawrkz. For INR 43.7 Cr, Nazara is purchasing a 60% share in the chain of indoor play centres. Funky Monkeys Play Centres, which was founded in 2012 by Binita Putcha and Sanjay Ghadiali, operates 11 locations around India and bills itself as the industry leader in indoor play centres for children.

     According to its founders, the acquisition will enable synergies with Nazara’s digital intellectual property, namely Kiddopia. For a 4.7% share in the AI-powered edtech platform, Nazara will invest INR 4.2 Cr. In October of last year, Learntube, formerly known as CareerNinja, obtained initial commitments from investors such as Blitzscaling Ventures, Goodwater Capital, and Bisk Ventures as part of its larger $2 million seed round. It’s unclear if the Nazara funding is included in the seed funding round as well. Learntube is a platform driven by artificial intelligence that combines gamification and individualised instruction to create an engaging educational experience.

    Nazara’s First AI Investment

    Nitish Mittersain, the CEO of Nazara, stated in a LinkedIn post that the Learntube investment will be the company’s first AI investment. According to Mittersain, Nazara is dedicated to creating the most diverse gaming and entertainment platform in India, and many of the efforts it unveiled on December 2nd are intended to spur profitable growth in these key areas of the business’ focus. The announcement of the financing follows Nazara’s November 27 private placement transaction, in which it raised INR 855 Cr ($101.3 Mn). The financing included participation from investors such as SBI Mutual Fund, Aamara Capital, and Mithun Sacheti, the founder of Caratlane.

    Nazara Expanding its Nexus

    The business subsequently stated that it intended to use the funds to finance corporate expansion, make strategic acquisitions, and improve the company’s capacity to grasp fresh growth prospects. Nazara said on November 29 that it has acquired Trinity Gaming, a gaming agency and platform, for INR 24 Cr ($2.8 Mn), shortly after obtaining the new funding. Notably, during its 2024 acquisition binge, the corporation acquired shares in Pokerbaazi, Paperboat, STAN, Fusebox, Ninja Global FZCO, Freaks 4U, and Circle of Games. Nazara’s consolidated net profit for the September quarter of the current fiscal year (Q2 FY25) was INR 16.24 Cr, which is 33% less than the INR 24.18 Cr it made in the same period last fiscal year.

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  • The Next Generation of Media and Entertainment: AVGC

    The media and entertainment industry’s future appears to be in the AVGC (Animation, Visual Effects, Gaming, Comics) sector. Films like PS1 and Kalki, along with Baahubali and RRR, have introduced a fresh approach to depicting historical and fantasy themes in Indian cinema. India now has the second-largest anime fandom in the world, and the FICCI-EY 2024 report projects that country will account for 60% of the increase in anime interest over the next several years.

    The Union Cabinet recently approved the creation of a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) in Mumbai, which is a major step toward making India a global hub for AVGC.

    Commenting on this development, Dr. Anuj Kacker, CEO of Aptech stated, “The National Centre of Excellence (NCoE) in Mumbai will help propel India to a global level. By nurturing innovation, creating Indian IP, and cultivating top talent, this initiative will unlock immense growth potential. With India’s growing animation fan base and burgeoning creative industry, the NCoE is expected to create 500,000 jobs, drive entrepreneurship, and establish India as a hub for the creation of high-quality immersive content. We applaud the government’s proactive approach to bolster the AVGC sector.”

    “For over two and half decades, at Aptech, we have been pioneers in contributing pre-trained talent and manpower to the AVGC industry with our top training brands – Arena Animation and MAAC. Our new brand – The Virtual Production Academy is also poised to empower aspiring working professionals with cutting edge, new age technologies for scaling up content creation industry in India,” he claimed.

    Echoing similar sentiments, Dr. Vipul Lunawat Founder Director , ISST( Institute of Sports Science & Technology), Pune said, “In a significant advancement for India’s burgeoning industries like augmented reality (XR) and visual effects (VFX), the Cabinet Office has recently launched a National Centre of Excellence for Animation in Mumbai. This move highlights the growing importance of these sectors in the development of India’s media and entertainment landscape, as well as the government’s recognition of their remarkable growth and influence. Traditionally, animation productions in television and film have depended heavily on external funding. With the emergence of various platforms and an increasing demand for high-quality content, there is now a pressing need to focus on creating original works.”

    Context of NCoE

    As partners with the Indian government, the Federation of Indian Chambers of Commerce & Industry and the Confederation of Indian Industry will represent the industry bodies in the establishment of NCoE as a Section 8 Company under the Companies Act, 2013. The Union Minister of Finance and Corporate Affairs’ budget announcement for 2022-2023 suggested the formation of a national AVGC task force, which led to the formation of the NCoE.

    The goal of NCoE AVGC is to develop a top-tier talent pool in India to serve the needs of the domestic and international entertainment industries. The Indian Institute for Immersive Creators (IIIC), a temporary name, seeks to innovate in immersive technology and transform the AVGC industry. It would take inspiration from esteemed establishments such as the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs).

    Disticnt Characteristics of NCoE

    • The development of Indian intellectual property (IP) for both domestic and international markets will also be a major emphasis of NCoE.
    • It will serve as an incubation facility by offering resources to support AVOC•CR start-ups and early-stage businesses.
    • It Will additionally present India as a centre for cutting-edge content production.
    • It will bolster India’s soft power internationally and draw in foreign capital to the MEE industry.
    • To be established in Mumbai, Maharashtra, and FICCI and Cll to represent business associations as collaborators with the Indian government.

    The Goals of NCoE (IIIC)

    The strong rise in the Indian animation industry can be attributed to the growing need for compelling mobile content, visual effects (VFX), films, and game animation. Skilled and motivated animators have great opportunities due to this boom. The animation sector in India is booming, with a projected value of INR 46 billion by 2023 (FICCI-EY Report 2023) and a growth rate of 25%. It presents a bright future for young, driven talent.

    With one of the lowest data rates available nationwide, fast-advancing technology, and rising internet penetration, the use of AVGC-XR is expected to increase exponentially on a worldwide scale. Many opportunities are created by this, especially through the National Centre of Excellence (NCoE). 

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  • R&D Center to Be Established in India by Krafton, Creator of PUBG and BGMI

    According to Sean Hyunil Sohn, the CEO of KRAFTON’s India business, the developer of PUBG and BGMI, plans to establish a research and development facility in India by the end of the year in order to create games that are reflective of Indian culture. The chief executive officer of KRAFTON India, Sohn, stated that while the specifics of the plant have not been decided upon yet, Bangalore and Pune are among the most attractive sites.

    “Whether we import them from abroad or develop them in-house, we will keep releasing games in the Indian market”.

    While speaking on the fringes of IDGS Gaming Conclave, he promised to “do our best” to establish a high-quality development team in India and create games inspired by Indian culture.

    India Being a Major Market for the Company

    In an earlier interview with a media agency, Sohn had said that India had one of the company’s top three user bases among its territories.

    Video games and other forms of digital entertainment are very popular in India.

    “I believe there is a shortage of supply of high-quality talent into the ecosystem, which has numerous causes, yet we have witnessed a very quick growth rate on an annual basis. People may not fully grasp gaming as a legitimate and serious job after learning just a brief overview of the industry’s history”.

    On top of that, he complained that the country’s basic information technology infrastructure for education was underfunded, despite its large and youthful population.

    How Gaming Industry Could Be the Game Changer?

    Promoting and changing public opinion about the gaming business is crucial because it has the potential to have a significant beneficial effect on the sector. The government ought to provide financial aid for schools.

    “Having spoken with several of the younger here, I get the impression that both the home and school environments suffer from a lack of necessary infrastructure. Obviously, I could be completely wrong about the state of education in India”.

    Sohn also clarified that the lack of appropriate hardware prevented them from pursuing their interest in learning to code and create video games.

    Despite the ease of access to knowledge and education in the modern day, he emphasised that the methods and reasoning behind them are equally important.

    KRAFTON intends to invest an extra $150 million in Indian businesses over the next two to three years, adding to the $160 million it has already invested in Indian entrepreneurs since 2021.

    The KRAFTON India Gaming Incubator program was established earlier this year by the company to assist talented Indian game creators. The initiative offers financing, mentorship, and other necessary tools to these developers.

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