The Indian gaming company Nazara Technologies said on March 15 that its subsidiaries Kiddopia and Mediawrkz now have access to all of the $7.75 million in cash. They had with the bankrupt Silicon Valley Bank (SVB). $7.25 million of the amount has been transferred to bank accounts outside of SVB. The remaining $0.5 million is for unrestricted operational use. Nazara had earlier stated that both subsidiaries were well capitalized. The SVB event would have no impact on their day-to-day operations, business performance, or growth plans.
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Shares of Nazara rose 1.2% higher to INR 505 on the BSE following the announcement. The shutdown of SVB on March 12 sent startups around the world into a panic. Since the bank worked mostly with tech companies backed by venture capitalists. The US government stepped in and made sure that depositors would be able to get their money. The closing of SVB is the biggest bank failure since 2008, when Washington Mutual Bank went bankrupt. SVB held total assets of $209 billion and deposits of about $175.4 billion. As of December 31, 2022, and investors like Y Combinator and General Atlantic worked with SVB.
Kiddopia, a gamified early-learning platform, is a 100% subsidiary of Paper Boat Apps, with Nazara owning 51.5% of the company. Mediawrkz is a 100% subsidiary of ad tech platform Datawrkz Business Solutions, with Nazara holding 33% of it. Government has assured Indian startup of all possible support. The Federal Deposit Insurance Corporation (FDIC) and the Department of Treasury said. Depositors will have access to all their money starting March 13.
