Nazara Technologies Limited Acquires Smaaash Entertainment Pvt. Ltd. for ₹126 Cr Through NCLT-Approved Resolution

Nazara Technologies, one of India’s leading gaming majors, has completed the ₹126 Cr acquisition of @Smaaash Entertainment — the sports entertainment startup known for its immersive gaming arenas — via an NCLT-approved insolvency resolution process.

As part of the transaction:

Nazara has infused ₹10 Cr in equity to acquire 100% ownership

An additional ₹116 Cr unsecured inter-corporate loan has been extended to settle creditor dues, which include lenders like Edelweiss Financial Services Limited ARC, YES BANK, SIDBI(Small Industries Development Bank of India), and Mabella Investment Advisors

Founded in 2012 by Shripal Morakhia, Smaaash operates experiential entertainment centres across India, offering bowling, go-karting, VR gaming, and dining experiences. It reported ₹112.34 Cr in revenue for FY24, slightly down from the previous year.

This acquisition comes nearly a year after Nazara received the LoI in August 2024, and two years after insolvency proceedings began in May 2022. Smaaash owed ₹452 Cr+ to Edelweiss alone, highlighting the scale of the distressed restructuring.

With this move, Nazara is making a strategic bet on physical gaming venues as a counterbalance to its online-first portfolio, which is under margin pressure from marketing-heavy verticals like real-money gaming (RMG) via PokerBaazi.

For context:

Q4 FY25 profit fell 53% QoQ to ₹4.1 Cr

FY25 net profit dropped 32% YoY to ₹51 Cr

FY25 operating revenue rose 43% YoY to ₹1,623.9 Cr

With Smaaash now fully integrated, Nazara is pushing for portfolio diversification — blending online scale with offline experiential moats to absorb volatility and tap into new monetization models.

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