Esports holding company NIP Group (NIP) has announced a multi-year partnership with ADIO Holdings Restricted Limited (ADIO), a company established by sovereign wealth fund Abu Dhabi Investment Office.
The deal will see ADIO support NIP with a backing of up to $40m (~£32.6m) over four years upon meeting ‘conditions precedent and specified performance milestones’, including qualitative and quantitative KPI and revenue targets.
Additionally, NIP will establish its global headquarters in Abu Dhabi, with the goal to expand its presence in the MENA region and worldwide.
This includes expanding across multiple verticals, such as esports, game publishing, events production, talent management and creative studios. Moreover, NIP Group will advise ADIO on strategies to develop a gaming and esports ecosystem in the UAE.
“We’re delighted to partner with ADIO as we bring together our Eastern and Western businesses, establishing a truly global headquarters that represents not only our growth as a company but the growth of gaming and entertainment in the Middle East,” noted Hicham Chahine, Co-CEO of NIP Group.
“Our selection as a key partner is the ultimate testament to NIP Group’s industry legacy and leadership.”
NIP Group made headlines when it went public on the NASDAQ exchange in July 2024. The stock is trading for $7,13 (~£5.82), as of today.
On the esports side, NIP Group’s Ninjas in Pyjamas brand competes across several game titles, including Rainbow Six Siege, League of Legends, Apex Legends, Rocket League, Counter-Strike 2, EA FC and MLBB, with operations across Sweden, China, Abu Dhabi and Brazil.
NIP Group’s recent milestones include strategic partnerships with key stakeholders such as Homeinns Hotels Group, The9’s subsidiary China Crown, and Italian football club Juventus FC. Additionally, NIP acquired Young Will, a talent management company specialising in short-form video content creation and influencer development.
In its latest H1 2024 financial report, NIP generated net revenues of $39.3m (~£31.02m), mainly attributed to strong growth in its event production business and a gross profit of $2.4m (~£1.89m).
Net losses amounted to $4.7m (~£3.71m), a sharp decrease from the $11.3m (~£8.92m) loss in 2023 thanks to a 56.6% reduction in general and administrative expenses.
