Nazara acquires Sachin Tendulkar-backed Smaaash for ₹126cr, entering location-based entertainment
What's the story
Leading gaming and entertainment company Nazara Technologies has acquired the popular entertainment chain Smaaash for ₹126 crore. The deal, which was approved by the National Company Law Tribunal (NCLT), makes Smaaash a wholly-owned subsidiary of Nazara. The acquisition is part of a court-approved resolution plan under the Insolvency and Bankruptcy Code, marking Nazara's entry into location-based entertainment.
Strategic move
Deal gives Nazara complete ownership of Smaaash
The acquisition comprises a ₹10 crore equity infusion through the subscription of one crore shares at ₹10 each, and an unsecured inter-corporate loan of ₹116 crore extended to Smaaash for settling creditor dues. The deal gives Nazara complete ownership of Smaaash and its location-based gaming and entertainment assets. It also provides an option to convert the ₹116 crore loan into equity under specific terms, offering flexibility in future structuring.
Company history
Journey from thriving start-up to insolvency
Founded in 2012 by Shripal Morakhia, Smaaash became a leading immersive entertainment chain in India. The company offered a unique blend of virtual reality, bowling, go-karting, cricket simulators, and other services under one roof. Despite its success with over 11 centers across India and backing from high-profile investors such as Sachin Tendulkar and Peak XV Partners, Smaaash faced financial distress due to the COVID-19 pandemic and a debt load of over ₹400 crore.
Growth strategy
Smaaash had a turnover of ₹112.34 crore in FY24
The acquisition of Smaaash fits into Nazara's inorganic growth strategy and the expansion of its gaming ecosystem across digital and physical platforms. The deal was executed at arm's length, according to Nazara. Smaaash had a turnover of ₹112.34 crore in FY24. The company entered corporate insolvency in May 2022 after defaulting on dues to Edelweiss Asset Reconstruction Company.