Nazara Technologies has unveiled an ambitious expansion plan for its Funky Monkey offline gaming business, signaling strong confidence in the physical gaming market's potential across India. The company is experiencing rapid growth in this segment and has outlined a strategic roadmap to significantly scale its operations.

Aggressive Expansion Strategy

The gaming company plans to maintain a steady expansion pace of 1-2 new Funky Monkey centers per month as part of its growth strategy. This consistent rollout is designed to help Nazara reach its target of establishing 100 centers across India within the next few years.

Strong Financial Projections

Nazara Technologies has provided detailed EBITDA margin expectations for its offline gaming business, demonstrating the segment's profitability potential. The company expects to achieve sustainable EBITDA margins that vary based on accounting standards.

Business Performance and Growth Momentum

The Funky Monkey offline gaming division is currently experiencing fast growth, according to the company's assessment. This strong performance appears to be driving the confidence behind the aggressive expansion plans and the decision to accelerate the rollout of new centers across the country.

The expansion strategy reflects Nazara's commitment to building a substantial physical presence in India's gaming market, complementing its existing digital gaming portfolio. The planned network of 100 centers represents a significant scaling of operations that could establish Funky Monkey as a major player in India's offline gaming sector.

Nazara Technologies has announced ambitious margin expansion targets alongside strategic growth initiatives for its gaming portfolio, signaling the company's confidence in its intellectual property-driven business model.

Margin Expansion Strategy

The gaming company expects to achieve overall margins exceeding 20% within the next year, with management indicating this milestone will likely be reached within two to three quarters. This margin improvement forms part of the company's strategic focus on core IP-driven gaming initiatives.

Kiddopia Growth Plans

The company has outlined expansion plans for Kiddopia, its educational gaming platform, targeting significant growth in FY27. Management is planning increased spending on user acquisition initiatives, driven by positive traction observed in current market performance.

The strategic initiatives reflect Nazara Tech's commitment to leveraging its intellectual property assets while expanding its user base through targeted investment in high-performing platforms.