 Morning Dispatch |
Nazara’s new raise; PEs gravitate to startups
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Happy Friday! Nazara Technologies is set to raise funds via a preferential issue. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ Ola Electric moves to dealership model
■ ETtech Done Deals
■ Explained: Nykaa’s growth plans
Nazara Technologies will raise Rs 733.5 crore through a preferential issue subscribed by the founders and senior leadership of Bluetile Games and BestPlay Systems.
Driving the news: The capital will help fund its Rs 2,909-crore takeover of the Spain-based businesses and support its global gaming push under incoming CEO Raymond Albaladejo Stauffer.
Also Read: Gaming firm Nazara posts Q1 loss
Tell me more:
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Private equity firms are moving away from large traditional buyouts in IT and software services, instead writing smaller cheques into founder-focused, AI-backed companies.
What’s happening: Experts said such investments are focused on digital, AI-infrastructure and data services stack. Valuations are selectively improving with business delivery getting remodelled and reassessed with uptick in AI-led productivity.
For instance:
Ola Electric will expand its sales and service network through dealer partners, marking a shift from its direct-to-consumer approach.
What's the plan? The company said its own stores will slowly be turned into brand and product experience centres. Dealer partners will now lead sales, servicing and expansion in local markets. Ola Electric said it is aiming to have its dealership network in place across the country by Diwali this year.
The dealer partners will gain access to the company's electric scooters, motorcycles and energy products, including Ola Shakti, its home battery system. They will also serve Ola Electric's customer base of more than one million people.
What else? BVR Subbu, the former president of Hyundai Motor India and an ex-board member of Ola Electric, is rejoining the company as senior advisor and will help with the rollout of the dealership network.
D2C activewear brand BlissClub has raised Rs 160 crore in a funding round led by Singularity AMC, with participation from founder and CEO Minu Margeret, Meesho cofounder Vidit Aatrey, and existing investors Elevation Capital and Eight Roads Ventures.
The details: Founded in 2020, BlissClub started as a women’s activewear brand before expanding into a broader omnichannel athleisure business.
The fresh capital will be used to expand the offline retail network, support category expansion and strengthen product development. “The idea is to double down on growth capital for the next phase. Offline is going to be a capex-heavy journey for us, and we’re also taking bets on new categories like men’s and launching new SKUs for women,” Margeret told ET.
Financials: The company says it has grown revenue by more than 60% year-on-year over the past two years, expanded its retail footprint to more than 40 stores, and entered the menswear category earlier this year.
Banking infrastructure provider M2P Fintech has raised Rs 100 crore in debt from Alteria Capital to fund its AI infrastructure and expand its lending, payments, and core banking software businesses.
Tell me more: The three-year facility, M2P’s second debt raise, will largely finance AI product development and computing capacity, cofounder and CEO Madhusudanan R told us.
M2P plans to use AI in its core banking and loan-management systems for underwriting, risk assessment, servicing, collections, and back-office operations.
Nykaa's next phase of growth: Premium beauty products, in-house brands, and quick commerce are emerging as Nykaa's key growth levers and margin drivers, as the beauty retailer doubles down on premiumisation while expanding its rapid delivery footprint.
Fisdom cofounders to leave Groww: Fisdom cofounders Subramanya SV and Anand Dalmia will leave Groww after completing the integration of the wealth management platform, nearly a year after the listed stockbroker acquired the firm.
Zomato assures Bengaluru restaurateurs of action: Food delivery platform Zomato has agreed to address a range of operational issues raised by Bengaluru's restaurant industry following talks with hoteliers on Thursday, easing tensions after restaurant associations threatened to delist themselves from food delivery platforms.
■ OpenAI didn’t notice its AI agents using a message board to plan their hacking spree (Wired)
■ Inside Intel: how America’s chip champion came back from the brink (FT)
■ The offline messaging apps challenging internet shutdowns (Rest of World)
Also in the letter:
■ Ola Electric moves to dealership model
■ ETtech Done Deals
■ Explained: Nykaa’s growth plans
Nazara to raise Rs 733.5 crore via preferential issue to Bluetile, BestPlay leadership
Nazara Technologies will raise Rs 733.5 crore through a preferential issue subscribed by the founders and senior leadership of Bluetile Games and BestPlay Systems.
Driving the news: The capital will help fund its Rs 2,909-crore takeover of the Spain-based businesses and support its global gaming push under incoming CEO Raymond Albaladejo Stauffer.
- The fundraise follows a restructuring of Nazara’s largest acquisition.
- Earlier, in March, Nazara agreed to buy 50% of Bluetile and BestPlay for Rs 918 crore, with performance-linked earnouts and options for the rest.
- It will now pay a fixed Rs 2,909 crore in cash for 100%, with 29% at closing and the balance in three instalments by April 1, 2027.
Also Read: Gaming firm Nazara posts Q1 loss
Tell me more:
- Stauffer will invest Rs 583.5 crore for a 4.6% stake, while Bluetile and BestPlay leadership will collectively own 5.87% of Nazara, compared with about 3.5% held by the founding family.
- Shares will be issued at Rs 306 apiece, subject to shareholder and regulatory approvals.
- Founder Nitish Mittersain said the structure gives the sellers “skin in the game” and aligns them with the group rather than just Bluetile.
PEs trade big buyouts for founder-led and AI-driven nimble companies
Private equity firms are moving away from large traditional buyouts in IT and software services, instead writing smaller cheques into founder-focused, AI-backed companies.
What’s happening: Experts said such investments are focused on digital, AI-infrastructure and data services stack. Valuations are selectively improving with business delivery getting remodelled and reassessed with uptick in AI-led productivity.
For instance:
- Everstone Capital invested in in SaaS solutions provider Wingify
- CPP Investments backed cloud, data centre and managed services provider CtrlS DataCenters
- Family offices backed Yotta Data Services full-stack cloud, data centre, AI, and cybersecurity services.
- Blackstone led $1.2 billion funding round in Neysa Networks.
Ola Electric moves to dealership model amid market share wipeout
Ola Electric will expand its sales and service network through dealer partners, marking a shift from its direct-to-consumer approach.
What's the plan? The company said its own stores will slowly be turned into brand and product experience centres. Dealer partners will now lead sales, servicing and expansion in local markets. Ola Electric said it is aiming to have its dealership network in place across the country by Diwali this year.
The dealer partners will gain access to the company's electric scooters, motorcycles and energy products, including Ola Shakti, its home battery system. They will also serve Ola Electric's customer base of more than one million people.
What else? BVR Subbu, the former president of Hyundai Motor India and an ex-board member of Ola Electric, is rejoining the company as senior advisor and will help with the rollout of the dealership network.
D2C activewear brand BlissClub raises Rs 160 crore funding led by Singularity
D2C activewear brand BlissClub has raised Rs 160 crore in a funding round led by Singularity AMC, with participation from founder and CEO Minu Margeret, Meesho cofounder Vidit Aatrey, and existing investors Elevation Capital and Eight Roads Ventures.
The details: Founded in 2020, BlissClub started as a women’s activewear brand before expanding into a broader omnichannel athleisure business.
The fresh capital will be used to expand the offline retail network, support category expansion and strengthen product development. “The idea is to double down on growth capital for the next phase. Offline is going to be a capex-heavy journey for us, and we’re also taking bets on new categories like men’s and launching new SKUs for women,” Margeret told ET.
Financials: The company says it has grown revenue by more than 60% year-on-year over the past two years, expanded its retail footprint to more than 40 stores, and entered the menswear category earlier this year.
M2P raises Rs 100 crore debt from Alteria to fund AI expansion
Banking infrastructure provider M2P Fintech has raised Rs 100 crore in debt from Alteria Capital to fund its AI infrastructure and expand its lending, payments, and core banking software businesses.
Tell me more: The three-year facility, M2P’s second debt raise, will largely finance AI product development and computing capacity, cofounder and CEO Madhusudanan R told us.
M2P plans to use AI in its core banking and loan-management systems for underwriting, risk assessment, servicing, collections, and back-office operations.
Other Top Stories By Our Reporters
Nykaa's next phase of growth: Premium beauty products, in-house brands, and quick commerce are emerging as Nykaa's key growth levers and margin drivers, as the beauty retailer doubles down on premiumisation while expanding its rapid delivery footprint.
Fisdom cofounders to leave Groww: Fisdom cofounders Subramanya SV and Anand Dalmia will leave Groww after completing the integration of the wealth management platform, nearly a year after the listed stockbroker acquired the firm.
Zomato assures Bengaluru restaurateurs of action: Food delivery platform Zomato has agreed to address a range of operational issues raised by Bengaluru's restaurant industry following talks with hoteliers on Thursday, easing tensions after restaurant associations threatened to delist themselves from food delivery platforms.
Global Picks We Are Reading
■ OpenAI didn’t notice its AI agents using a message board to plan their hacking spree (Wired)
■ Inside Intel: how America’s chip champion came back from the brink (FT)
■ The offline messaging apps challenging internet shutdowns (Rest of World)
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I agree to receive newsletters and marketing communications via e-mail