GAME ON - Nazara backs gaming startup HashCube
Mobile game developer and
publisher Nazara Technologies is leading the first round of
institutional funding in mobile gaming startup HashCube, which counts
Google India chief Rajan Anandan and former head of Yahoo India, Sharad
Sharma, (through Indian Angel Network) as its early backers. Founded
in 2009 by gaming enthusiasts Ramprasad Rajendran and Deepan
Chakravarthy, Bangalore-based HashCube Technologies will be the first
investment by WestBridge Capital-backed Nazara, which set up a Rs 10
crore fund to invest in gaming startups earlier this year. In June this
year, blue chip Silicon Valley venture fund Sequoia Capi
tal invested $15 million in Octro, a Delhi-based mobile gaming company.
The first rush of venture money in mobile gaming came in the mid-2000s
but investor interest waned after the economic crisis of 2007-08.
The Rs 4.2 crore series ‘ A’ round of investment in HashCube will also
see Perry LaForge, Ah Ventures and existing investors Indian Angel
Network and Blume Ventures participate, signalling the renewed interest
in the mobile gaming sector as smartphone penetration and mobile data
usage grow rapidly in the country.
The Nazara Game Fund aims to support young mobile gaming startups which are yet to be spotted by financial investors. “The attempt is to help startups from the ideation to the VC stage; it’s our way of helping grow the ecosystem,” said Nitish Mittersain, CEO, Nazara Technologies, one of the pioneers in the Indian gaming space having started the company in 2000 after graduating from college. The startup fund size may go up to as much as Rs 100 crore as VCs have shown interest in backing the concept. Mittersain, however, did not elaborate on who the investors would be.
The Mumbai-based Nazara will work closely with HashCube, which has 3 million users, on its Quest mobile game series, the first of which was Sudoku Quest. Additionally, Nazara, which is present across Africa, Middle East and south east Asia, will deploy its distribution networks to market these games globally. With annual revenues of Rs 150 crore, Nazara claims to be clocking in consistent profits which has made it a potential target for strategic investors but Mittersain said for now the company was not evaluating any offers. “We are beefing up our senior management and may look to raise up to $50-75 million to grow the business,” he said. Nazara, which has a user base of 12 million, last raised capital in 2007 from WestBridge, it’s sole investor.
HashCube’s Chakravarthy said, “We are excited to work with Nazara Technologies not just as an investor, but as a strategic partner. Nazara’s expertise in developing and distributing games to a global audience will be a great asset for us.”
The Nazara Game Fund aims to support young mobile gaming startups which are yet to be spotted by financial investors. “The attempt is to help startups from the ideation to the VC stage; it’s our way of helping grow the ecosystem,” said Nitish Mittersain, CEO, Nazara Technologies, one of the pioneers in the Indian gaming space having started the company in 2000 after graduating from college. The startup fund size may go up to as much as Rs 100 crore as VCs have shown interest in backing the concept. Mittersain, however, did not elaborate on who the investors would be.
The Mumbai-based Nazara will work closely with HashCube, which has 3 million users, on its Quest mobile game series, the first of which was Sudoku Quest. Additionally, Nazara, which is present across Africa, Middle East and south east Asia, will deploy its distribution networks to market these games globally. With annual revenues of Rs 150 crore, Nazara claims to be clocking in consistent profits which has made it a potential target for strategic investors but Mittersain said for now the company was not evaluating any offers. “We are beefing up our senior management and may look to raise up to $50-75 million to grow the business,” he said. Nazara, which has a user base of 12 million, last raised capital in 2007 from WestBridge, it’s sole investor.
HashCube’s Chakravarthy said, “We are excited to work with Nazara Technologies not just as an investor, but as a strategic partner. Nazara’s expertise in developing and distributing games to a global audience will be a great asset for us.”
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