South Korean gaming powerhouse Krafton, the company behind global hits like PUBG and Battlegrounds Mobile India (BGMI), is significantly ramping up its commitment to India with the launch of a new growth investment fund. Dubbed the Unicorn Growth Fund, this substantial venture aims to deploy approximately $670 million into India's rapidly expanding technology startup ecosystem over the next four years. This strategic move underscores Krafton's ambition to deepen its presence in the world's largest internet user base, extending its focus beyond its core gaming operations.
Fund Structure and Contributions
The Unicorn Growth Fund is a collaborative effort, bringing together Krafton, South Korean internet conglomerate Naver, and investor Mirae Asset. Managed by Mirae Asset Venture India, the fund is slated for establishment in January and will commence operations with an initial size of over $334.6 million. Krafton itself will contribute approximately $137.2 million at the first close. A Krafton spokesperson confirmed that Naver's capital commitment is expected to be "broadly comparable" to Krafton's initial investment.
The fund will maintain flexibility, operating without rigid country-allocation thresholds. Typical investment sizes are projected to range between $10 million and $30 million. Krafton has indicated that investments made through this new fund will primarily be treated as financial positions rather than purely strategic bets. However, the level of engagement with portfolio companies may vary, depending on the specific opportunities and the long-term potential each business presents.
Krafton's Existing India Footprint
To date, Krafton has already invested over $200 million in India, backing a diverse portfolio of companies across the gaming, content, and fintech sectors. Notable recent investments include fintech firm Cashfree and venture fund IMM Investment. Earlier strategic bets also included popular gaming and content platforms such as Nodwin Gaming, Loco, Pratilipi, and Kuku FM. Further solidifying its commitment, Krafton launched a gaming incubator in India in 2023 and, earlier this year, acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million.
Navigating Challenges and Future Vision
Krafton's journey in India has not been without its hurdles. Its flagship local title, BGMI, faced a ban from New Delhi in 2022 due to national security concerns. The game was eventually allowed to return in 2023 following a three-month trial approval. In response to its return, Krafton subsequently committed an additional $150 million investment in the country.
BGMI, which boasts over 240 million downloads, originally launched in 2021 as a revamped, localized version of PUBG Mobile. PUBG Mobile itself had been banned by the Indian government in mid-2020. To address these regulatory concerns, Krafton implemented significant operational changes, including severing ties with Tencent as its publisher and migrating its India servers to Microsoft's Azure cloud.
With the new Unicorn Growth Fund, Krafton is poised to broaden its India strategy significantly. By channeling capital into a wider array of technology startups beyond gaming, the company aims to solidify a long-term, diversified presence in one of Asia's most dynamic and fastest-growing digital markets.
