Nazara Technologies, which is a Mumbai-based gaming company has announced that it has acquired an additional 48.42% stake in Paper Boat Apps Pvt. Ltd (PBA) from its promoters, Anupam and Anshu Dhanuka, for 300 crore.

The whole transaction brings Nazara's ownership in PBA to 100%, and the company will pay the amount in cash. The Paper boat apps is the developer and publisher of the popular children’s digital gamified learning app Kiddopia, and it was titled as top 3 grossing app for children between 2 and 8 years of age in the United States of America.

The company reported a consolidated revenue of 219.4 crore and an EBITDA of 56.1 crore for FY24, with a net cash balance of 155.74crore as of March 2024.

Nitish Mittersain, CEO and Joint Managing Director of Nazara Technologies mentioned, “At Nazara, we believe an IP such as Kiddopia has immense potential that can be unlocked through several new initiatives and acquiring full ownership underscores our commitment to intensifying our efforts in the gamified learning sector."

Nazara announced that it will consider merging Paper Boat Apps into the company at the right time to fully integrate the globally popular kids' learning IP, Kiddopia.

This merger will allow Nazara to utilize the strong cash flows from Kiddopia for both organic and inorganic growth opportunities, according to the release.

Since acquiring a 50.91% stake in Paper Boat Apps in 2019, Nazara has seen Kiddopia grow significantly and become a favorite among children worldwide.

Mittersain also added, “Nazara is quickly becoming the go-to platform for entrepreneurs in the gaming, sports, and entertainment sectors globally to access opportunities to scale up and generate liquidity for themselves along the way, as exemplified by this transaction."

Nazara is aiming to execute a multi-pronged strategy to drive growth and expansion of the Kiddopia franchise through IP licensing and integration, global market expansion, deeper synergies within its network, and additional revenue streams, including merchandising, video, and advertising revenues, in addition to the current model of subscription revenues.

Promoter of Paper Boat Apps, Anupam Dhanuka said, "It has been an incredible journey developing Kiddopia into a beloved app for children and parents worldwide. Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara."

He also added, “We believe that Kiddopia has substantial growth potential, and Nazara is well-positioned to take it to the next level. We wish Nazara and the entire Kiddopia team the best of luck in their future endeavors.”