Our esport segment contributing 50% plus revenue now: Manish Agarwal – Economic Times

“A year back, when we did our IPO, our early learning contributed 41%. Today, the esport segment is contributing 50% plus. Our view is that all of these four segments are amazing growth drivers and we keep adding more companies to friends of Nazara Network and growing them very fast,” says Manish Agarwal, CEO, Nazara Technologies.



What does your recent acquisition of Brandscale Innovation bring to the table?
For us, it is all about figuring out the gaming community which is growing very fast in India. We have 500 million gamers and are growing. Out of that, the real story has been the growth of multiplayer based games and India which is about people who play Freefires and PUBGs and Call of Duty on mobiles and that tribe is growing. It is almost 100 million and growing very fast.

These set of gamers are driving esports – be it participation in tournaments or viewership – and for their effective game play, they need very nuanced gaming accessories whether it is the headphones which have less latency or mousepads or the mouse itself. So, those kinds of gaming accessories will be in demand and that will continue to increase very fast as the number of gamers and the activity around gaming and time spent around multiplayer games increase.

In our portfolio, we already have a very dominant position in esports through Nodwin where we have almost half a million people coming in to participate in the tournaments every year. We have over 100 million viewership every quarter and it is but natural for us to unlock this community value and enter into the gaming accessories business. We saw amazing potential in the founding team of Brandscale Innovation and through them, we could look at tapping into the market which we believe is going to be very big.

Coming to the esport segment, over the years we have seen it growing quite substantially. For FY22 and beyond, can we see more than 50% of your revenues coming in from this particular segment?
We have always maintained that we run four segments of business; early learning, premium, esports and skill-based real money gaming. A year back, when we did our IPO, our early learning business was contributing 41%. Today, the esport segment is contributing 50% plus. Our view is that all of these four segments are amazing growth drivers and we keep adding more companies to friends of Nazara Network and growing them very fast.

It is a relative pace of growth of the companies and each of these segments will determine what the pie in the revenue mix is going to look like. As of today, it is 50% plus. But things may change in one year-one and a half years from now, depending upon what kind of companies we are able to do and what kind of growth we are able to achieve in those companies.

So, that mix is never a constant mix for us.

For a company like Nazara Tech, it is all about investments, acquisitions. Big gaming companies have got their names, got their market cap rerated only once they got two or three hit products. So, it is always about investment, acquisition, looking for new things?
Not really. Our track record is about investing in these companies not just the money but amount of time and strategic intent and then growing them very very fast. …….

Source: https://economictimes.indiatimes.com/markets/expert-view/our-esport-segment-contributing-50-plus-revenue-now-manish-agarwal/articleshow/90958188.cms

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