The PUBG maker doubles down on the world’s largest internet market, expanding its scope beyond gaming into fintech, content, and emerging tech
Krafton’s Bold New Chapter in India
Krafton, the South Korean gaming giant behind PUBG and Battlegrounds Mobile India (BGMI), is stepping up its India game—this time with a $670 million growth fund aimed at the broader tech ecosystem.
- Named the Unicorn Growth Fund, the initiative is a collaboration between Krafton, Naver, and Mirae Asset.
- The fund will be managed by Mirae Asset Venture India and is set to launch operations in January 2026.
- With a starting capital of ₹30 billion (~$335M), it targets total deployment of ₹60 billion (~$670M) over four years.
Krafton itself will contribute ₹12.3 billion (~$137M) in the first close, with Naver expected to match that commitment.
More Than Just Gaming
While Krafton is best known for its blockbuster mobile games, this new fund signals a strategic shift. Rather than focusing solely on gaming, Krafton now plans to invest across fintech, content, and broader tech verticals.
- Investments will be treated as financial rather than strategic, although the company may get more hands-on depending on the startup’s long-term promise.
- Typical investment sizes will range from $10 million to $30 million, making it a growth-stage focused fund.
This pivot reflects Krafton’s ambition to embed itself in India’s digital economy, not just its gaming sector.
Krafton’s Track Record in India
Krafton is no stranger to India. The company has already invested over $200 million in Indian startups.
- Past investments include Cashfree (fintech), Nodwin Gaming, Loco (streaming), Pratilipi (storytelling platform), and Kuku FM (audio content).
- In 2023, Krafton launched a gaming incubator in India.
- Earlier this year, it acquired a controlling stake in Nautilus Mobile, a homegrown gaming studio, for $14 million.
This year’s Unicorn Growth Fund will build on that foundation, signaling a long-term commitment beyond opportunistic deals.
Krafton’s journey in India hasn’t been without challenges. Its flagship game BGMI was banned in 2022 over national security concerns, echoing a 2020 ban on PUBG Mobile.
- BGMI returned in 2023 under a three-month trial window.
- Krafton responded with a $150M investment commitment, efforts to localize infrastructure, and severing ties with Tencent, PUBG’s original publisher.
- The company moved game servers to Microsoft Azure’s India cloud region to address data sovereignty issues.
These regulatory adjustments have been key to rebuilding trust and re-establishing operations in the Indian market.
Why India, Why Now?
India remains one of the fastest-growing digital markets globally, with:
- Over 800 million internet users,
- A booming startup ecosystem, and
- Strong tailwinds in mobile-first content consumption.
For Krafton, this isn’t just a growth bet—it’s a strategic hedge against tighter gaming regulations in China and a way to tap into a market with demographic scale and digital acceleration.
By collaborating with regional giants like Naver and Mirae, Krafton is signaling that it wants to be a long-term capital partner for India’s next wave of unicorns.
