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Rakesh Jhunjhunwala Picked Up Equity Stake Worth Rs 180 Crore

Ace investor Rakesh Jhunjhunwala has backed up Mumbai based gaming startup Nazara by picking up equity stake worth Rs 180 crore. Often cited as India’s Warren Buffett, Rakesh Jhunjhunwala had earlier stayed aloof from the e-commerce and digital area in Asian nation, citing issues over valuations, business models and an absence of money flows. “Most of the massive corporations globally are designed from the profit and not investors’ money. I might prefer to see online corporations with a profitable model and there isn’t any. I will be able to believe it after they sell at associate degree economic value,” Rakesh Jhunjhunwala had seen in Retail Leadership Summit last year.

Equity Stake

Further, the ace capitalist had quipped, “I can take into account Flipkart’s stake if it’s valued at $100 million.” Amusingly, in its latest quarterly report, Valic Co has marked down Flipkart’s valuation slightly to concerning $7.9 billion—which is much below the $11.6 billion valuation at that Flipkart raised funds earlier this year.

What’s creating Rakesh Jhunjhunwala optimistic on Nazara?

“I am continually on the lookout for promising corporations that are unit leaders in high growth verticals. Nazara is a leading company within the mobile games business. Nazara incorporates a consistent account of delivering profits, cash flows, in conjunction with economical use of capital and high ROE. I see a growth potential within the company,” Rakesh Jhunjhunwala stated. The investment in Nazara helped the Mumbai-based company raise Rs 540cr within the past 3 weeks.

“We area unit delighted to own Rakesh Jhunjhunwala as associate degree capitalist in Nazara and it’s an excellent validation useful augmentation delivered by Nazara for its existing shareholders,” Nitish Mittersain, decision maker of Nazara Technologies aforesaid. the event is additionally seen to convey a heads up to Nazara’s coming commerce scheduled for the center of next year.

According to a recent KPMG report, the gaming industry in Asian nation is calculable to be value over $360 million and is poised to grow and reach $1Tn by 2021, the business will seemingly reach over 310 million gamers round the country. The huge potential of the phase provided some way for plenty of startups to explore.

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