Silicon Valley Bank fallout: Nazara Technologies' subsidiaries hold Rs 64 crore in cash at collapsed lender

Nazara Technologies Limited, a leading gaming and sports media platform in India has released an official statement regarding the cash balances held by two of its step-down subsidiaries, Kiddopia Inc and Mediawrkz Inc. The intimation is being made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015.

According to the statement, both Kiddopia Inc and Mediawrkz Inc hold cash balances at Silicon Valley Bank (SVB), which is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC). The combined cash balance held by the two subsidiaries is USD 7.75 million (Rs 64 crores).

Kiddopia Inc is a 100 per cent subsidiary of Paper Boat Apps Private Limited, owned 51.5 per cent by Nazara, while Mediawrkz Inc is a 100 per cent subsidiary of Datawrkz Business Solutions Private Limited, owned 33% by Nazara.

The FDIC has announced that it will issue an advance dividend to depositors within the next week, with further payments coming as asset sales occur. However, Nazara has stated that regardless of the ultimate outcome and its timing, both subsidiaries are well capitalized, generating positive cash flows and profitability, and hence their day-to-day operations, business performance, and growth plans will not be affected by the SVB event.

Furthermore, the Nazara Group, which includes Nazara Technologies Limited and its subsidiaries, maintains healthy reserves of cash and cash equivalents in excess of INR 600 crores, excluding the SVB-impacted funds.

The situation with SVB remains fluid, and Nazara has assured its stakeholders and the public at large that it will keep them updated on further developments.

Also read: FDIC takes control of collapsed Silicon Valley Bank, retains employees for 45 days at 1.5x salary

On Friday, the startup-focused lender SVB Financial Group suffered a sudden collapse, making it the largest bank to fail since the 2008 financial crisis. This event shook global markets and left billions of dollars belonging to companies and investors in limbo. With approximately $209 billion in assets at the end of last year, SVB Financial Group was ranked as the 16th largest bank in the United States.