Nikhil Kamath, co-founder of Zerodha, is optimistic about the rapid growth of gaming and e-sports compared to traditional content formats. In an exclusive interview with CNBC-TV18, he highlighted that interactive content's ability to create a strong feedback loop is gaining significant traction, particularly among the younger generation.
Kamath emphasised the uniqueness of gaming, noting that unlike traditional mediums like cricket and Bollywood, gaming allows users to actively interact with the content, fostering deep engagement, particularly among the youth. "The fact that a user can interact with the data, and he is engaging with it so much more makes it a compelling sector for investment," Kamath said.
According to a report titled "Ready.Set.Game ON" by EY, India is poised to witness a remarkable surge in e-sports viewership and revenue, with expectations of a fourfold increase to reach Rs 1,100 crore by 2025. This promising growth has caught the attention of the Indian government, which, in December 2022 officially integrated e-sports into mainstream sports disciplines, acknowledging it as a vital component of a 'multisport' event.
Consequently, e-sports now falls under the jurisdiction of the Ministry of Sports and Youth Affairs, signaling a commitment to foster its development.
Growing interest in investment in gaming and e-sports sector
During the interview, Kamath also revealed his intention to bolster his investment in Nazara Technologies, the sole player in India's thriving e-sports industry. He commended the company's progress under the leadership of Nitish Mittersain, Joint MD & CEO of Nazara Technologies, in addressing longstanding challenges and positioning the company for growth.
Kamath said, "We really like the sector and view this as a long-term thing and would love to engage with them more in the future, maybe increase and play the eSports gaming theme through them,” he said.
When asked about his stake in Nazara Technologies, Kamath disclosed, "The stake was about a percent. I think now it should be up to about 3.5 percent," underlining his intention to hold a meaningful position in the company.
CNBC-TV18 reported on Friday that Kamath is looking to buy more stake in gaming company Nazara Technologies.
Kamath applauded Nazara Technologies' performance in the e-sports segment, highlighting that nearly half of their revenue is generated from this sector. He expressed optimism about the continued rapid expansion of e-sports, saying, "I would presume it's likely that it will continue to grow at a quick pace," and encouraged Indian gaming companies to compete globally.
Regarding the size of his investment, Kamath estimated it to be "about Rs 150 crore," solidifying his commitment to the gaming and e-sports industry through Nazara Technologies.
Regarding the possibility of his involvement at the board level and potential synergies between Zerodha and Nazara, Kamath clarified that this investment is a personal endeavor and unrelated to Zerodha's operations.
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