A significant strategic decision has been made by Nazara Technologies, specifically, the divestment of their vertical operations in the esports and adtech industry verticals. According to news by the Founder and CEO of Nazara Technologies, Nitish Mittersain, Nazara plans to concentrate on its core gaming operation.

This constitutes a significant strategic decision by the company, which is based in Mumbai, as it wants to cut down on its accounting work and focus on other growth areas in the gaming industry. According to reports, this move will witness Nazara transformed into a more focused gaming company rather than being involved in a variety of media and advertising businesses as it has been over the past few years.

Primary driver behind the divestment strategy

The primary driver for this divestment is Nazara’s desire to focus on key gaming segments, especially its PC and console gaming businesses. These areas are critical to where the company will focus its growth in the future, as noted by CEO Nitish Mittersain. 

Nazara aims to redirect investments and operational resources to building new gaming intellectual property (IP) and acquisitions by exiting non-core segments. This shift represents a resolution aimed at leveraging the rising demand for high-quality gaming experiences in both a global and domestic sense, which is no longer primarily mobile gaming.

Centres of Excellence have been created internally by Nazara to facilitate a more streamlined way of functioning, which would be covered under one coordinated umbrella. These centres focus on important areas, which include User Acquisition, Analytics, Artificial Intelligence (AI), Growth, and Product Development.

Through the common operating framework, the company will create centralized support for the current IPs the company owns and any future ones they acquire. The structural change will enhance the efficiency of the company and ensure the most efficient deployment of the company’s technological and analytical resources to the benefit of the company’s main gaming products.

Planned exit and financial performance

Two of Nazara’s key business pillars are scheduled for exit. Its operation takes place through NODWIN Gaming, one of the top recognized subsidiaries in youth media and competitive gaming. 

NODWIN Gaming’s operations span a wide range, including freerolls, creator networks, and tournaments by the likes of Trinity Gaming, Comic Con India, Freaks 4U Gaming, and Ninja Global. Nazara’s approach suggests it will go back and focus on the software and game development part of the business as the brands become a significant part of the market, but it seems ready to make.

On the adtech side, the divestment will impact Datawrkz, an advertising technology platform in which Nazara holds a majority stake. Traditionally, Datawrkz has niche specialized areas of digital advertising, monetization, and user acquisition strategies. 

Scales’ move signals the company’s intent to part ways with the adtech division, marking a departure from its long-term plans that relied on third-party advertising services as an essential component. The change reflects the company’s strategy to streamline some of its service-related firms and pursue a move toward a product-focused approach in the gaming industry.

This strategic adjustment follows a challenging set of operating data and an evolving regulatory landscape. Operating revenue at Nazara fell from ₹520 crore in the 4Q of 2025 to ₹398 crore in the same period this year. 

The company’s performance for the full year of FY26 reflected resilience, with its revenue based on operations growing by 12.6% to reach ₹1,829 crore. The company’s profit rose by 60.8% and stood at ₹82 crore for the fiscal year. The numbers reflect short-term fluctuations but indicate that the company is on a positive path as it prepares for the transition phase.

External factors have also played a role in shaping Nazara’s new direction. The firm abandoned its plan to acquire a minority stake in PokerBaazi’s parent company, Moonshine Technology, last year. 

The move followed the passing of the Promotion and Regulation of Online Gaming Act, 2025, which has essentially banned all forms of online gambling games in India. Nazara Technologies’ move into real-money online gaming spaces like those mentioned above has been driven by the lucrative nature of such industries. This has led the firm to withdraw from those areas in pursuit of more profitable traditional PC and console gaming IP products.

Conclusion

It’s a game-changing moment for Nazara Technologies by moving away from the esports and adtech sectors. The company’s divestiture of significant assets like NODWIN Gaming and Datawrkz suggests a new narrative that highlights its confidence in the power of the pure-play gaming business model.

The development of internal centers of excellence that work toward creating games related to PC and console games highlights its newfound focus on technology as a core aspect of content creation. The divestiture will help consolidate the firm’s diverse portfolio in preparation for building a leaner and more efficient company in the future.