Manish Agarwal, the CEO of Nazara Tech, one of the leading mobile games company headquartered in Mumbai, has said the company could clock a revenue of 450 Crores in the FY20-21. Please note that they have only 181 Crores of revenue in FY18-19 and 240 Crores in FY19-20. So what could be the reason for this spurt in the revenue? Below are some of the reasons for the revenue growth. 1. The company is seeing strong growth in the Esports business. Under this model, amateur players watch the live stream of the match being played by the professional players on OTT platforms & listen to live commentary. This is a very new concept. Let us understand this in detail. We all watch a live cricket match on TV or OTT platforms like Hotstar. The company like Star Sports buys live streaming rights of a cricket match from the company/board who is organizing cricket. This is how the company/board who is organizing cricket earns revenue. Star Sports then earn from ads etc. Now imagine, a game like PUBG, played by professionals in the indoor stadium and live streaming is shown on television or the OTT platform. Imagine you are sitting at home watching live games. This is the new concept that is picking up with a lot of pace in India. The company like Nazara will organize such games and sell media rights to players maybe like Star Sports and earn revenue. Nazara Tech is aiming to make a battery of these games which can be played by professionals. eSports is the fastest growing sports entertainment format among competitive gamers and Nazara has over 80% share of the Indian market through its majority stake in Nodwin. 2. Due to the COVID-19 outbreak, the company has seen its network grow from 5 Crores monthly active users (MAUs) to 10 Crores MAUs and expects this to further grow to 13 Crores by the end of this fiscal. 3. Nazara's battery of acquisition in the last 2-3 years in the field of esports, virtual sports, and early learning verticals have started to give them results. We have seen how Online Gaming is another sector after IT and Pharma, which saw their business flourish during the pandemic. So, we at UnlistedZone are very much optimistic about strong growth in the gaming business in India in the next 5 -10 years.