As per the latest news reports, Nazara Technologies is eyeing online gaming firms hit by Goods and Services Tax (GST) demands. This news comes at a time when there are a host of online gaming brands that were given tax notices by the GST authorities.
The latest news reports state that Nazara Technologies’ CEO Nitish Mittersain is looking to expand the brand’s hold across the real money gaming industry by acquiring the companies hit by GST as they could be bought at a lucrative valuation.
Mittersain reportedly told Economic Times, “Given that the new taxation regime transfers the liability to the player, platform providers need not worry about taxation going forward. But retrospective dues are definitely a challenge. They are nearly three times the books of these companies, and we definitely cannot absorb those.”
The media reports also add that Nazara CEO is aware of the risks associated with acquiring the online gaming brands that are facing huge GST liabilities. As news reports state that the Indian real money gaming industry is facing a retrospective GST demand to the tune of ₹1.5 Lakh Crore. This in addition to the 28% GST imposed on the full face value of the deposits made on online real money gaming platforms starting 1st October 2023.
When it comes to Nazara Technologies the brand made headlines when it raised ₹500 Crore from firms like Zerodha (₹100 Crore) and SBI Mutual Fund (₹400+ Crore). SBI Mutual Fund investments came from SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund.
Nazara Technologies also announced the launch of Nazara Publishing, a game development division of the company. Nazara reportedly aims to launch at least 20 games in a span of 18 months.
The gaming and sports media company will reportedly invest ₹1 Crore in every game. As per the latest media reports, Nazara wants to provide the game developers with various features like data analytics, beta testing, enhanced monetization, localisation among others. For more news and updates, keep reading GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter, and Telegram.
With a Masters Degree in Journalism and Communication, Mrinal Gujare currently is cruising through an exciting genre of writing and editing at Gutshot Magazine. Apart from being an Editor, Mrinal is an avid reader and a former contemporary dancer. She is also perennially hungry for intriguing scoops from across the globe. No holds barred is the rule Mrinal follows in life.
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