Nazara Technologies aims for full acquisition of Kiddopia in $36 million deal

Nazara Technologies, a prominent gaming company, is on the verge of acquiring the remaining 49% stake in its subsidiary, Kiddopia, for ₹300 crore ($36 million). The move comes amidst a notable decline in Kiddopia’s subscriber base, as reported by sources to CNBC-TV18.

Kiddopia, an educational app primarily targeting the US market, has been facing challenges with its user retention. By the end of the 2023-24 fiscal year, the app saw an 18% year-on-year drop in subscribers, with a 6.5% decrease from the previous quarter, reducing the total to 250,000 subscribers. Despite these setbacks, Kiddopia generated a revenue of ₹220 crore and an EBITDA of ₹55 crore in the same fiscal year.

Developed by Paper Boat Apps, Kiddopia offers gamified learning experiences for young children. Nazara Technologies initially acquired a 51% stake in Kiddopia in 2020 for ₹80 crore, allowing the app’s founders, Anshu Dhanuka and Anupam Dhanuka, to exit. Now, with the impending full acquisition, Nazara aims to consolidate its control and steer Kiddopia towards a more robust growth trajectory.

The acquisition is expected to be finalized by the end of July, marking a significant step in Nazara’s strategy to enhance its portfolio and strengthen its position in the educational gaming sector. As the company prepares for this transition, it remains committed to leveraging its resources to rejuvenate Kiddopia’s market presence and subscriber growth.