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Gaming and entertainment company Nazara Technologies saw its FY24 profit after tax (PAT) rise by 21.8% at Rs 74.8 crore, compared to Rs 61.4 crore in FY23. However, in the latest quarter, the company’s after-tax profits plummeted by 97.8% year-on-year to Rs 0.20 crore (Rs 20 lakh), down from Rs 9.4 crore in Q4 FY23.

For the year ending March 31, 2024, Nazara’s operating revenue stood at Rs 1,138.3 crore, marking a 4.3% increase from the Rs 1,091 crore it earned in the previous fiscal year. However, in the January-March quarter, its operating revenue shrank by 8.1% year-on-year to Rs 266.2 crore.

Most of Nazara’s revenue comes from three core segments–gaming, esports, and adtech. According to investor presentations, the gaming segment generated a revenue of Rs 406.5 crore in FY24. Nearly half of this revenue came from Kiddopia, a subscription-based gamified early learning app with over 5 million downloads on Google Play.

However, a major chunk of Nazara’s revenue came from its e-sports category, which brought in Rs 631.7 crore in FY24.

While Nazara’s expenses rose by a modest 2.9% to Rs 1,010.4 crore in FY24 compared to Rs 981.2 crore in the year ago period, the company significantly reduced its advertising and promotional expenditure by 26% to Rs 177.5 crore. In Q4 FY24, the total expenses decreased by 9.4% to Rs 237 crore, down from Rs 261.6 crore in Q4 FY23.

In 2024, the Nikhil Kamath-backed gaming company strengthened its cash position by raising Rs 950 crore, its largest fundraise till date, mainly from strategic and financial investors, for M&A and growth initiatives. The company had also acquired ComicCon India, a gaming and entertainment convention, for Rs 55 crore.

Founded in 1999, Nazara Technologies is a diversified gaming and sports media platform that offers a range of services including mobile gaming, esports organisation, and digital advertising technology. The company is backed by late billionaire Rakesh Jhunjhunwala and Zerodha’s Nikhil Kamath.