Nazara Technologies has acquired the remaining 48.42% stake in Paper Boat Apps, the developer of the popular gamified learning app Kiddopia, for Rs 300 crore. This acquisition makes Paper Boat Apps a wholly-owned subsidiary of Nazara Technologies.
The acquisition deal involves a cash payment to Paper Boat Apps’ founders, with payments to be made in tranches, according to a filing with the stock exchange. Kiddopia, targeted at children aged 2-8 years, generates over 90% of its business from the US.
Nazara Technologies is planning to integrate Kiddopia into its platform, leveraging the app’s healthy cash flows for both organic and inorganic growth. This move is expected to enhance Kiddopia’s reach and profitability.
Nazara first acquired a 50.91% stake in Paper Boat Apps in 2019. For FY24, Paper Boat Apps reported consolidated revenue of Rs 219.4 crore, EBITDA of Rs 56.1 crore, and a net cash balance of Rs 155.74 crore.
“Kiddopia has been one of our most popular IPs in the kids’ space. We have now increased our holdings to 100% by buying out the founders. We see significant potential for Kiddopia’s growth and aim to elevate it to the next level with this investment,” said Nitish Mittersain, CEO and joint managing director of Nazara Technologies.
Nazara has been actively acquiring gaming studios both in India and abroad. Recent acquisitions through its esports and events arm, Nodwin, include Comic Con India, Publishme, Branded, and Ninja Global.
The company has set aside approximately Rs 830 crore for mergers and acquisitions in key markets such as India, Europe, and North America. For FY24, Nazara’s total revenue increased by 4.3% to Rs 1,138 crore, with profit after tax from continued operations rising 41% to Rs 89 crore.
“Following the majority acquisition by Nazara, Kiddopia has scaled tremendously. We are pleased to see it find a permanent home within Nazara, which is well-positioned to drive its future growth,” said Anupam Dhanuka, promoter of Paper Boat Apps.
Nazara’s acquisition of Paper Boat Apps marks a strategic move to strengthen its portfolio and capitalize on the growing market for children’s educational content.
