Krafton Commits Additional $250 Million to Expand Beyond Gaming in India

Krafton, the South Korean developer known for PUBG and Battlegrounds Mobile India (BGMI), announced plans to invest another $250 million in India over the next three to four years. This new investment aims to extend the company’s presence beyond gaming into areas such as artificial intelligence, robotics, and deep technology. With this commitment, Krafton's total planned investment in India surpasses $500 million, building on the more than $250 million already invested since 2021. This fresh capital is separate from a $670 million India-focused growth fund Krafton helped launch in partnership with South Korean internet giant Naver and investor Mirae Asset in late 2023. Krafton had previously pledged approximately $137 million to that fund’s initial closing. India represents a strategic market for Krafton due to its vast internet user base exceeding one billion and over 700 million smartphone users. The company initially concentrated on gaming, particularly with BGMI, a localized version of PUBG that has achieved over 260 million downloads. Krafton has also diversified by investing in Indian startups across gaming and digital content sectors. Krafton's journey in India has faced challenges. The Indian government banned PUBG Mobile in 2020 amid geopolitical tensions, prompting Krafton to launch BGMI in 2021 with changes including removing Tencent Games as publisher and migrating servers to Microsoft Azure. BGMI was briefly banned in 2022 but reinstated on a trial basis in 2023. Krafton continues to develop the franchise and plans to release BGMI Lite by the end of 2026. Beyond gaming titles, Krafton has invested in around 18 Indian companies, including gaming studios and digital content platforms like Nodwin Gaming, Loco, Pratilipi, Kuku FM, and One Impression. The company also acquired Pune-based Nautilus Mobile, known for the Real Cricket series, and launched KIGI Academy to nurture local talent in game development and digital creation. The announcement followed a meeting between Krafton chairman Chang Byung-gyu and Indian Prime Minister Narendra Modi, where they discussed enhancing collaboration between India and South Korea in gaming, technology, and emerging sectors. Krafton's expanded investment underscores its commitment to India as a key market and innovation hub beyond traditional gaming.