When Nazara bought 55% stake in Nodwin Gaming back in 2018, it was a risky bet that esports would one day rival cricket and Bollywood as a huge business opportunity in the entertainment industry.

But in 2018, India’s esports sector was barely on any radar, Smartphone penetration had created a generation of PUBG fans, but competitive gaming was seen more as a hobby or a break from work, rather than a profession or career.

Nodwin was only a small startup at the time, with a turnover of just INR 18 Cr, compared to Nazara’s revenue scale of close to INR 180 Cr. Plus, esports was still very much a niche category at the time of the acquisition.

Seven years later, Nodwin Gaming has gone beyond an esports company to targetting India’s wider youth culture and entertainment space with properties and IPs like Comic Con India, music festivals and other events that cut across gaming and entertainment segments.

From around INR 18 Cr in 2018, Nodwin reported INR 500 Cr in revenue in FY25. Nazara’s backing has been pivotal in that journey. But now Nodwin is looking beyond Nazara for the next phase in its journey.

Last week, Nazara disclosed that it has amended the investment agreement with Nodwin, reclassifying the company from a subsidiary to an associate. The move reduces Nazara’s board control but the gaming and entertainment giant remains the largest shareholder with a 46.87% stake.

For Nodwin’s cofounder and managing director Akshat Rathee, this transition is not about separating from Nazara, but about enabling flexibility and bringing in more investors.

“When Nazara invested in us we had just $2 Mn in turnover,” Rathee told Inc42. “We’re now a fairly large company with ambitions of touching $100 Mn in the next two years and $1 Bn in revenue in the next five years.”

Rathee added that the journey will require bigger capital pools than Nazara’s typical cheque size in the $20 Mn–$50 Mn range. Which is why Nodwin is eyeing a $100–200 Mn raise in the next few years to fund international expansion and acquisitions, and push the revenue needle.

The cofounder explained that by relinquishing board control, Nazara has cleared the path for Nodwin to bring in new investors who may otherwise hesitate to back a tightly held subsidiary.

The reclassification also relieves Nodwin from the burdens of being treated as a “deemed listed” company, where it had to comply with the strict disclosure and compliance rules of a publicly traded entity without the associated benefits.

On whether Nazara’s........

© Inc42