Krafton Expands Its India Ambitions with a $670M Growth Fund
Krafton, the South Korean gaming giant behind popular titles like PUBG and Battlegrounds Mobile India (BGMI), is making a bold move to solidify its presence in one of the world’s most dynamic digital markets. The company has announced the launch of the Unicorn Growth Fund, a new investment vehicle designed to fuel growth across India’s technology ecosystem.
The fund, a collaboration between Krafton, South Korean internet giant Naver, and investor Mirae Asset, aims to deploy up to ₹60 billion (around $669.3 million) over four years. It will be managed by Mirae Asset Venture India and is expected to begin operations in January with an initial size of more than ₹30 billion (about $334.6 million). Krafton will contribute ₹12.3 billion (approximately $137.2 million) at the first close, while Naver’s commitment is expected to be broadly comparable to Krafton’s investment.
Investments through the fund will primarily be treated as financial positions rather than strategic bets, though the level of engagement with portfolio companies could vary depending on each opportunity’s potential. Typical investment sizes are expected to range between $10 million and $30 million.
A Strategic Push into India’s Tech Ecosystem
Krafton has already made significant investments in India, backing companies in gaming, content, and fintech. Recent investments include fintech platform Cashfree and venture fund IMM Investment, alongside earlier bets on gaming and content platforms such as Nodwin Gaming, Loco, Pratilipi, and Kuku FM. The company also launched a gaming incubator in India in 2023 and acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million earlier this year.
Despite its successes, Krafton’s journey in India hasn’t been without challenges. In 2022, the Indian government banned BGMI, the company’s flagship local title, before allowing it to return in 2023 following a three-month trial approval. Since then, Krafton has made several operational changes, including cutting ties with Tencent as its publisher and migrating its India servers to Microsoft’s Azure cloud, to address regulatory concerns.
Beyond Gaming: Diversifying the Investment Portfolio
With the new fund, Krafton is looking to extend its India strategy beyond gaming, channeling capital into a wider set of technology startups. This move reflects the company’s long-term vision to build a strong presence in one of Asia’s fastest-growing digital markets.
The fund’s flexible approach allows for investments across various sectors, positioning Krafton to support innovation in areas such as AI, fintech, and enterprise software. By investing in a diverse range of startups, Krafton aims to create a robust ecosystem that aligns with India’s evolving digital landscape.
Looking Ahead
As Krafton continues to expand its footprint in India, the new fund represents a significant step forward in its strategy. With a focus on both gaming and broader technology ventures, the company is well-positioned to capitalize on the opportunities presented by India’s growing tech scene.
