Happy Friday! Nazara Technologies Set to Raise Funds via Preferential Issue
In today’s ETtech Morning Dispatch, we delve into the latest developments in the tech and startup ecosystem, including Nazara Technologies’ significant fundraising move, Ola Electric’s strategic shift, and much more.
Nazara to Raise Rs 733.5 Crore via Preferential Issue
Nazara Technologies is gearing up to raise Rs 733.5 crore through a preferential issue, primarily subscribed by the founders and senior leadership of Bluetile Games and BestPlay Systems. This capital infusion is pivotal for Nazara as it aims to fund its ambitious Rs 2,909-crore acquisition of Spain-based businesses and bolster its global gaming initiatives under the leadership of incoming CEO Raymond Albaladejo Stauffer.
Driving the News:
- This fundraising follows a restructuring of Nazara’s largest acquisition. Initially, in March, Nazara had agreed to acquire a 50% stake in Bluetile and BestPlay for Rs 918 crore, which included performance-linked earnouts. The new deal will see Nazara paying a fixed Rs 2,909 crore for a 100% stake, with payments structured over several years.
- Stauffer himself will invest Rs 583.5 crore for a 4.6% stake, while the leadership from Bluetile and BestPlay will collectively hold 5.87% of Nazara, a notable increase from the 3.5% held by the founding family.
Background:
Stauffer took over as CEO on September 1, while founder Nitish Mittersain remains as managing director, focusing on strategy and global relationships. This transition marks Nazara’s shift from a founder-run business to a professionally managed entity.
Private Equity Firms Shift Focus to Nimble, AI-Driven Companies
In a notable trend, private equity firms are moving away from large traditional buyouts in IT and software services. Instead, they are increasingly investing in smaller, founder-led, and AI-driven companies. This shift reflects a broader industry trend where investments are concentrated on digital, AI infrastructure, and data services.
What’s Happening:
Experts indicate that valuations are selectively improving as businesses adapt to AI-led productivity. For instance:
- Everstone Capital has invested in Wingify, a SaaS solutions provider.
- CPP Investments has backed CtrlS DataCenters, focusing on cloud and data center services.
- Blackstone led a $1.2 billion funding round in Neysa Networks.
Deal Mix Changing:
In the first half of 2026, private equity firms closed 21 deals in this space, with only five buyouts and 14 growth investments. This marks a significant shift from the previous year, highlighting a growing preference for agile, innovative companies.
Ola Electric Moves to Dealership Model Amid Market Share Wipeout
In a strategic pivot, Ola Electric is transitioning to a dealership model, moving away from its direct-to-consumer sales approach. This change comes as the company aims to regain market share and expand its sales and service network through dealer partners.
What’s the Plan?
Ola Electric plans to convert its existing stores into brand and product experience centers while allowing dealer partners to lead sales and servicing. The company aims to establish a comprehensive dealership network across India by Diwali this year.
Additional Insights:
Dealer partners will have access to Ola Electric’s range of products, including electric scooters and home battery systems. Notably, BVR Subbu, a former president of Hyundai Motor India, is rejoining the company as a senior advisor to assist with this rollout.
D2C Activewear Brand BlissClub Raises Rs 160 Crore Funding
BlissClub, a direct-to-consumer activewear brand, has successfully raised Rs 160 crore in a funding round led by Singularity AMC. The round also saw participation from notable investors, including Meesho co-founder Vidit Aatrey.
The Details:
Founded in 2020, BlissClub initially focused on women’s activewear but has since expanded into a broader omnichannel athleisure business. The new capital will be utilized to enhance its offline retail presence, support category expansion, and strengthen product development.
Financial Growth:
The company has reported a 60% year-on-year revenue growth over the past two years and has expanded its retail footprint to over 40 stores.
M2P Raises Rs 100 Crore Debt from Alteria to Fund AI Expansion
M2P Fintech, a banking infrastructure provider, has raised Rs 100 crore in debt from Alteria Capital. This funding will primarily support the company’s AI infrastructure and expand its lending, payments, and core banking software services.
What’s Next?
The three-year facility, M2P’s second debt raise, will finance AI product development and enhance computing capacity. The company aims to integrate AI into its core banking and loan-management systems for improved underwriting and risk assessment.
Other Top Stories
- Nykaa’s Growth Plans: The beauty retailer is focusing on premium products and quick commerce as key growth levers.
- Fisdom Co-founders Exit Groww: After integrating their wealth management platform, the co-founders will leave the company.
- Zomato’s Assurance to Bengaluru Restaurateurs: Following discussions, Zomato has committed to addressing operational issues raised by local restaurateurs.
Global Picks We Are Reading
- OpenAI’s AI Agents: A look into how AI agents planned a hacking spree unnoticed.
- Intel’s Comeback: An exploration of how Intel has rebounded from challenges.
- Offline Messaging Apps: Innovations aimed at overcoming internet shutdowns.
Stay tuned for more updates and insights from the tech world!
