🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: Nazara Technologies, Kiddopia, Paper Boat Apps, Nazara UK, Inter-Corporate Loan, Gaming M&A, Working Capital Loans, SEBI LODR, Related Party Transactions
📌 At a Glance
Nazara Technologies just pulled off a classic corporate manoeuvre: moving ₹70 Cr from India to the US, and then ₹99 Cr from the US to the UK — all via its wholly-owned subsidiaries Paper Boat, Kiddopia, and Nazara UK.
🧾 It’s all legal.
🔄 It’s all internal.
👀 But what are they really up to?
Let’s decode the chain, the cash, and the chaos.
🕸️ The Money Chain
Let’s simplify:
- Paper Boat Apps Pvt Ltd (India) → lends $8.2 million (~₹70 Cr) to
- Kiddopia Inc. (USA) → lends £8.6 million (~₹99 Cr) to
- Nazara Technologies UK Ltd (UK)
Yup. A classic Delhi → New York → London pipeline. The gaming equivalent of a multiverse plotline with no villain, only balance sheets.
🧠 What’s the Point?
- Nazara claims the funds will be used for:
- 💼 Working capital
- 🛒 Acquisitions
- 🚀 Expansion plans
- No shares are being issued.
- No special rights given.
- No collateral posted.
- No dilution, just internal muscle-flexing.
🏦 Who Are These Entities?
| Entity | Role | Location |
|---|---|---|
| Nazara Ltd | Parent Company | India |
| Paper Boat Apps | Indian subsidiary | India |
| Kiddopia Inc. | US subsidiary of Paper Boat | USA |
| Nazara UK | Direct subsidiary of Nazara | UK |
The logic? Keep cash fluid across borders for global expansion — without needing to go to the public markets.
📉 Stock Movement Today
| Stock | CMP (₹) | Change (%) | Remarks |
|---|---|---|---|
| Nazara | 718.40 | -0.67% | No major move yet |
Markets haven’t reacted much… yet.
🔍 Key Terms of Loan Agreements
| Particulars | Agreement I (Paper Boat → Kiddopia) | Agreement II (Kiddopia → Nazara UK) |
|---|---|---|
| Amount | $8.22 million (~₹70 Cr) | £8.60 million (~₹99 Cr) |
| Nature | Unsecured | Unsecured |
| Security | None | None |
| Outstanding as of now | Nil | £6.8 million |
| Related Party? | Yes (Exempted under 23(5)(c)) | Yes (Exempted under 23(5)(c)) |
| Purpose | Internal lending | WC, M&A, Expansion |
🤔 Why Now?
Because Nazara is in growth mode again.
- After a tepid FY24, they’ve announced expansion plans across Europe.
- Kiddopia is already a strong revenue generator in the preschool edtech space.
- Nazara UK might be gearing up for strategic acquisitions in gaming or esports.
Also, remember:
The quickest way to fund your dreams in London is to funnel it from your kids’ app in the US. 🧒➡️🕹️➡️💷
🧠 EduInvesting Take
This is either:
- A masterclass in tax-optimized capital deployment
or - A game of intra-group musical chairs before a big UK acquisition
The fact that:
- No equity is being issued
- No third-party lending is involved
- And SEBI-related party exemptions are used judiciously
… suggests this isn’t shady. It’s just… very strategic.
But the real question is:
What’s happening in Nazara UK that’s worth ₹99 Crores?
🚨 What To Watch Next
- Any announcement from Nazara UK about:
- New studio acquisitions
- Licensing deals
- Entry into console or cloud gaming
- Q1 FY26 results: Where does this money show up?
🎮 Final Boss Level: What This Means for Investors
Nazara’s gaming empire is growing, but cash efficiency will be key.
- If the UK expansion pays off — great, they’ve reinvested wisely.
- If not — they’ve turned their children’s app earnings into expensive foreign experiments.
Either way, this ₹170 Cr cash ballet is not casual.
Stay tuned, and keep your trigger fingers on that results deck.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: Nazara Technologies, Kiddopia, Paper Boat Apps, Nazara UK, Inter-Corporate Loan, Gaming M&A, Working Capital Loans, SEBI LODR, Related Party Transactions
