Krafton Unveils $670M Fund to Expand India Tech Bets

Krafton, the South Korean powerhouse behind PUBG and Battlegrounds Mobile India (BGMI), is deepening its footprint in the Indian market with the launch of a new growth investment vehicle. The project, dubbed the Unicorn Growth Fund, aims to inject up to ₹60 billion—approximately $669.3 million—into the local digital economy over the next four years.

This initiative is a strategic alliance between Krafton, internet conglomerate Naver, and investment firm Mirae Asset. According to the company, the fund is scheduled to launch in January with an opening capital of over ₹30 billion, or roughly $334.6 million. Krafton has committed an initial contribution of ₹12.3 billion ($137.2 million), with Naver expected to provide a similar amount.

Investment Strategy and Scope

Management of the vehicle will be handled by Mirae Asset Venture India. While the fund will primarily focus on financial returns, Krafton noted that the level of strategic involvement with portfolio companies may shift based on the specific potential of each business. The firm intends to maintain flexibility, with expected individual investment tickets ranging between $10 million and $30 million.

The move marks a significant diversification for Krafton, which is looking to expand its influence beyond the gaming sector. To date, the company has already deployed over $200 million across various Indian industries, including:

• Fintech ventures such as Cashfree.
• Content and media platforms like Pratilipi and Kuku FM.
• Gaming-focused entities including Nodwin Gaming, Loco, and Nautilus Mobile.

Navigating the Indian Regulatory Landscape

Krafton’s history in India has been marked by significant regulatory hurdles. Its flagship title, BGMI, was subjected to a government ban in 2022 before receiving a three-month trial clearance to return in 2023. Following that reinstatement, the company pledged an additional $150 million investment in the region.

The company has actively worked to align with local requirements since the 2020 ban of PUBG Mobile due to national security concerns. Operational adjustments have included severing ties with Tencent as a publisher and transitioning India-based server operations to Microsoft’s Azure cloud infrastructure. BGMI currently stands as a major success for the firm, having surpassed 240 million downloads since its 2021 debut.

By targeting a broader array of technology startups, Krafton aims to solidify a long-term presence in what remains one of the world’s most significant and fastest-growing internet user bases.