India’s gaming boom has largely unfolded on mobile screens and livestream platforms. Now, gaming major Nazara Technologies is betting that the next phase of growth will happen offline. Through its Funky Monkey centres, the gaming major is building a network of indoor play arenas, a strategy that promises faster cash flows, stronger brand touchpoints, and insulation from platform volatility.

While Nazara is widely recognised for its mobile games, esports platforms and global IP portfolio, its offline gaming business is now scaling up as the company is opening one to two new centres every month. What began as an experimental vertical is increasingly being positioned as a core pillar of Nazara’s long-term strategy, at least the company has indicated so in its Q3 earnings call.

In Q3 FY26, Nazara reported a revenue of ₹30.4 Cr in its offline gaming segment which includes Smaash and Funky Monkey. In the quarter, Smaaash contributed the larger share of offline revenues with ₹24.3 Cr in revenue and ₹7.1 Cr in EBITDA, compared to Funky Monkeys’ ₹6.1 Cr in revenue and ₹3.7 Cr in EBITDA.

While Smaaash currently drives a higher topline, Nazara is increasingly sharpening its focus on Funky Monkeys, given its faster scalability, quicker breakeven, and stronger unit economics.

It is to be noted that Nazara acquired a majority stake in Mumbai-based Funky Monkeys Play Centers Private Limited for ₹43.7 Cr last year. On the other hand, it acquired insolvency-ridden Smaaash Entertainment for a total consideration of ₹126 Cr last year.

From Screens To Physical Play

The appeal of Funky Monkey lies in its simplicity: safe, structured indoor play spaces for children and families, combining soft play zones, arcade-style games and experiential activities.

But behind the colourful slides and ball pits is a tightly optimised operating model. “Our Funky Monkey centers have been expanding pretty rapidly. We’re........

© Inc42