Why Did Nazara Technologies Withdraw the Paper Boat Apps Merger?
Gaming company Nazara Technologies has officially withdrawn its proposed merger with its wholly owned subsidiary Paper Boat Apps Private Limited after receiving approval from the National Company Law Tribunal (NCLT). The decision follows changes in the company’s internal restructuring strategy as it sharpens its focus on its core gaming business.
In a regulatory filing on Tuesday, Nazara said the NCLT approved its application to withdraw the Scheme of Amalgamation, formally ending the merger process. The company’s board had already approved the withdrawal in May 2026, citing revised restructuring plans.
What Is Paper Boat Apps and Why Is It Important to Nazara?
Nazara Technologies first entered Paper Boat Apps in 2019, acquiring a 50.91% stake in the company. In July 2024, it purchased the remaining 48.42% stake from promoters Anupam Dhanuka and Anshu Dhanuka for ₹300 crore, making Paper Boat Apps a wholly owned subsidiary.
Founded by PR Rajendran, R Kalpana, and PR Jayashree, Paper Boat Apps is best known for developing Kiddopia, a subscription-based educational app designed for children aged two to seven years. The platform generates the majority of its revenue from the United States, making it one of Nazara’s key international digital education assets.
What Did the NCLT Decide?
According to the NCLT order dated June 18, 2026, the tribunal allowed Nazara Technologies’ request to withdraw the proposed merger scheme.
With the application approved, the merger proceedings have been formally dismissed as withdrawn, allowing Paper Boat Apps to continue operating as a separate wholly owned subsidiary instead of being merged into Nazara Technologies.
Why Is Nazara Changing Its Restructuring Strategy?
The withdrawal comes as Nazara Technologies restructures its business portfolio to focus more aggressively on its core gaming operations.
Over the past few months, the company has announced plans to streamline its operations by exiting or divesting businesses that are not central to its long term gaming strategy. This includes reducing exposure to esports and adtech, allowing management to allocate greater resources toward gaming, publishing, and interactive entertainment.
Keeping Paper Boat Apps as a separate subsidiary may also provide greater operational flexibility while allowing Nazara to evaluate future strategic options for the business.
What Does This Mean for Nazara’s Future?
The withdrawal of the merger does not affect Nazara’s ownership of Paper Boat Apps, which remains a 100% owned subsidiary of the company.
Instead, the move reflects a broader effort by Nazara Technologies to simplify its corporate structure while concentrating on high growth gaming businesses. As India’s gaming industry continues to expand, investors will closely watch how the company executes its revised strategy and whether further portfolio restructuring follows.
