Nazara Technologies, a mobile gaming company in India, on Sunday said its two step-down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances at the Silicon Valley Bank (SVB).

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Silicon Valley Bank at present is under the receivership of the Federal Deposit Insurance Corporation (FDIC).

In a statement, the company said, "The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for $7.75 million (approximately Rs 64 crore)."

Nazara Technologies in a regulatory filing said, “Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of Rs 600 crore excluding the SVB impacted funds."

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Kiddopia Inc is a 100 percent subsidiary of Paper Boat Apps Private Ltd (owned 51.5 percent by Nazara) and Mediawrkz Inc is a 100 percent subsidiary of Datawrkz Business Solutions Private Ltd (owned 33 percent by Nazara).

FDIC has stated that it would issue an advance dividend to depositors within the next week with future payments coming as asset sales occurred.

Regardless of the ultimate outcome and its timing, both subsidiaries continue to be well capitalised and are generating positive cash flows along with profitability. Therefore, we expect no impact on their day-to-day operations, business performance, and growth plans due to the SVB event.

The situation with SVB remains fluid and the company shall keep all the stakeholders and the public at large updated on further developments.

Also Read: Silicon Valley Bank employees got bonuses just hours before government takeover: Report

The startup-focused lender SVB Financial Group on Friday closed by regulators, which took control of the bank’s deposits and handed its control to FDIC. The FDIC will likely liquidate the bank's assets to pay back its customers, including depositors and creditors.

The crisis at the Silicon Valley Bank has turned up to be the largest bank to fail since the 2008 financial crisis. SVB Financial Group, which had approximately $209 billion in assets at the end of 2022, was ranked as the 16th largest bank in the United States.

First Published:Mar 12, 2023 5:02 PM IST