Krafton’s Largest India Investment Yet

South Korean gaming company Krafton, the maker of PUBG and Battlegrounds Mobile India (BGMI), has revealed a new investment venture centered around the Indian tech market. The company confirmed that it will set up a Unicorn Growth Fund worth up to ₹60 billion, or approximately $670 million. The fund is aimed at startups and tech businesses across India, the next four years.

This move is in line with Krafton’s big wager on India as a global growth and innovation hub. The fund, which is a collaborative effort between Krafton and Naver, a South Korean internet company, and Mirae Asset, a leading investor, is being launched. The new instrument will be involved with companies from the most advanced tech startups to the already-established growth-stage ones.

Fund Structure and Roles

Krafton will invest ₹12.3 billion (around $137 million) at the first close. The Unicorn Growth Fund will be managed by Mirae Asset Venture India. Naver is likely to contribute a similar amount as Krafton’s initial investment. The operational and investment decisions will be under the control of Mirae Asset.

The investment amounts will not be fixed. A usual check may be as high as $30 million and as low as $10 million depending on the stage and the potential of the company. There is no strict geographical allocation policy in the fund, which means that it can invest anywhere within the Indian digital economy sectors.

What Krafton Has Done in India So Far

Krafton has put over $200 million into India already. One of its initial moves was to pump money into the tech-based gaming, fintech, and content platform sectors through startups. Some of the past investments include supporting the fintech firm Cashfree, investing in local gaming communities and platforms, and backing content creators such as Nodwin Gaming and Pratilipi.

Furthermore, the firm took over the majority of the shares in Indian game studio Nautilus Mobile by the beginning of this year. In the year 2023, Krafton started a gaming incubator to provide talent with resources and facilitate the rapid growth of startups in this sector.

Regulatory Challenges and Resilience

Krafton’s path in India was pretty bumpy with a lot of challenges. The Indian government imposed a ban on BGMI in 2022 because of regulatory concerns regarding data and security.

Following several months of negotiation and changes, the game got a green light to come back in 2023 on a trial approval phase. To meet the regulations, the company has made several moves locally such as putting servers on the cloud and ending relations with some foreign publishers for whom they were sharing the Indian market.

Why This Fund Matters

Krafton through the Unicorn Growth Fund is moving out of the gaming domain. The move makes the company a major technology investor in India market. The Indian tech ecosystem has been luring international capitals because of its fast digital growth, huge consumer base, and increasing startup activities. The fund launched by Krafton is a major source of capital that is intended to be used for the Indian entrepreneurs to scale their businesses.

Impact on India’s Startup Landscape

India is rapidly becoming a major market of technology and innovation. Startups in such areas as fintech, artificial intelligence, gaming, media, ecommerce, and enterprise software vie for capital and talent. The companies in the region will get access to a whole new world of resources if a fund this size is there, especially in terms of growth-stage financing.

Future Outlook

Krafton’s refocus of attention is a clear indication that India is a crucial market for their global strategy. Besides gaming, Krafton is only executing the game with India but also wagering on the larger potential of the Indian technology sector by keeping up with the investments, partnering strategically, and delving more into the local ecosystems.

This move can be seen as a signal to other global investors that they may likewise bolster their India presence.

Frequently Asked Questions

What is the Unicorn Growth Fund?

The Unicorn Growth Fund is a single sizeable investment proposal that is supported by Krafton, Naver, and Mirae Asset and is aimed at investing in

high-growth technology startups in India and across Asia. The expected size is close to $670 million, with an initial pool of more than $333 million at the launch.

Why is Krafton investing in this fund?

Krafton is not only focusing on gaming but is also looking at the potential of technology-related investments. India has become a priority for the company

because of its fast-growing digital market and strong startup ecosystem. By investing

in this fund, Krafton can take part in the growth of companies in various sectors such as AI, fintech, digital content, logistics, etc.

When will the fund start operating?

The operations of the Unicorn Growth Fund are planned to start in January 2026.

Who manages the fund?

The fund management will be under Mirae Asset Venture India, which is a reputed investment management firm having experience in the Asian markets.

What kind of companies will the fund invest in?

The fund is designed to support startup companies that are already at the growth

stage and have the potential to become unicorns. These might be firms operating in the fields of artificial intelligence, consumer internet, fintech, logistics, digital content, or enterprise tech.

How big are the typical investments?

The fund will make mid-sized investments that are suitable for companies that have already achieved product-market fit and are at the stage of scaling, although the exact terms will vary by deal. Common investments in growth funds of this nature

are usually between $10 million and $30 million, depending on the opportunity.

Does this fund replace Krafton’s other investments in India?

No. Krafton has committed more than $200 million to Indian companies, including gaming and tech startups. The new fund is not replacing those efforts but rather supplementing them.

Which countries does the fund focus on?

Besides India, the fund can also invest in any Asian country where it sees a large-scale tech potential, that is to say, the fund is flexible.

How does this impact India’s startup ecosystem?

This fund is a major new pipeline of capital for growth-stage companies. Startups in need of expansion capital will definitely consider it as an option alongside other global venture and growth investors.

Will Krafton still make direct investments?

Krafton is going to be making direct strategic investments as always. Still, the Unicorn Growth Fund is a bigger, formalized channel through which one can participate in a broader set of opportunities.

How does this relate to BGMI and Krafton’s gaming business?

Krafton was able to gain popularity in India through BGMI and earlier PUBG Mobile, thereby creating a loyal consumer base. So the success made it easy to establish

presence and credibility but the Unicorn Growth Fund is not limited to gaming; it is a general tech investing initiative.