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What is hurting Rakesh Jhunjhunwala-backed Nazara Tech?

The share price of the company has taken a beating in the last few months. It is down about 69 percent from its highs.

June 23, 2022 / 04:20 PM IST
Representative image (Pexels)

Representative image (Pexels)

In the last couple of years, fantasy sports – the kind where you create teams and bet on them – have become hugely popular in the country. We have seen big investments from renowned investors in this segment.

However, there is one player – having a huge gaming empire – that has largely been absent from the fastest growing segment of e-sports: Nazara Technologies. And, that is perhaps a big flaw in its strategy, say analysts.

Real money gaming (RMG), which refers to skill-based games like poker, rummy, and even cricket where players can bet money playing against another player or the system, has been the real money churner in India. They now contribute 40 percent of India’s gamer base, said JM Financial in its report.

The reason is in the gaming genre (which is different from fantasy sports and RMGs) Indians prefer simpler board games like Ludo or Candy Crush that are difficult to monetise while higher grossing action and adventure games are relatively less popular.