Subsidiaries of Nazara Technologies hold Rs 64 cr cash in crisis-hit Silicon Valley Bank
Mar 12, 2023
New Delhi [India], March 12 : Listed mobile gaming company Nazara Technologies on Sunday said two of its step-down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances worth Rs 64 crore at Silicon Valley Bank (SVB), which is currently under crisis.
"The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for USD 7.75 mn (~INR 64 crores)," Nazara Technologies informed stock exchanges in a regulatory filing.
Kiddopia Inc is a 100 per cent subsidiary of Paper Boat Apps Private Limited (owned 51.5 per cent by Nazara) and Mediawrkz Inc is a 100 per cent subsidiary of Datawrkz Business Solutions Private Limited (owned 33 per cent by Nazara).
Further, Nazara Group said the group and its subsidiaries continue to maintain "healthy reserves of cash and cash equivalents" in excess of Rs 600 crore, excluding the SVB impacted funds.
"The situation with SVB remains fluid and the company shall keep all the stakeholders and public at large updated on further developments," Nazara Technologies said.
One of the most prominent lenders in the world of technology startups, Silicon Valley Bank, which was struggling, collapsed on Friday, forcing the US federal government to step in, The New York Times reported.
The crisis-hit bank's shares tumbled over 60 per cent this week, data showed.
Regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation (FDIC).
The FDIC is acting as a receiver, which typically means it will liquidate the bank's assets to pay back its customers, including depositors and creditors. All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, read an FDIC statement.
Meanwhile, Union minister Rajeev Chandrasekhar said he will meet Indian startups this week to understand the impact of SVB Financial's collapse on them and how the government can help during the crisis.
"The @SVB_Financial closure is certainly disrupting startups across world. Startups are an imp part of #NewIndia Economy," Union Minister of State for Entrepreneurship, Skill Development, Electronics and Technology Chandrasekhar said in a tweet on Sunday.
