Krafton, the South Korean gaming company known for titles like PUBG and Battlegrounds Mobile India (BGMI), is launching a growth investment fund aimed at India, enhancing its efforts in the country with the largest internet user base.
The fund, named the Unicorn Growth Fund, is a partnership between Krafton, South Korean internet conglomerate Naver, and investor Mirae Asset. It plans to invest up to ₹60 billion (approximately $669.3 million) over four years, as confirmed by Krafton.
Managed by Mirae Asset Venture India, the fund is expected to be established in January and will start with an initial size of over ₹30 billion (around $334.6 million). Krafton will contribute ₹12.3 billion (about $137.2 million) at the first close.
Naver’s investment is anticipated to be similar to Krafton’s $137 million commitment. The fund will not have strict country-allocation limits, with typical investments ranging from $10 million to $30 million.
Krafton stated that investments from the new fund will mainly be treated as financial positions rather than strategic investments, although the level of involvement with portfolio companies may vary based on opportunities and long-term potential.
To date, Krafton has invested over $200 million in India, supporting companies in gaming, content, and fintech. Recent investments include fintech firm Cashfree and venture fund IMM Investment, along with earlier investments in gaming and content platforms like Nodwin Gaming, Loco, Pratilipi, and Kuku FM. The company also launched a gaming incubator in India in 2023 and acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million earlier this year.
Krafton’s expansion in India has faced challenges. New Delhi banned BGMI, its flagship local title, in 2022 but allowed its return in 2023 after a three-month trial approval. Following this, Krafton announced a $150 million investment commitment in the country.
BGMI, which has over 240 million downloads, was launched in 2021 as a localized version of PUBG Mobile, which was banned by the Indian government in mid-2020 due to national security concerns. Since then, Krafton has made several operational adjustments in India, including ending its partnership with Tencent as its publisher and moving its Indian servers to Microsoft’s Azure cloud to address regulatory issues.
With the new fund, Krafton aims to broaden its strategy in India beyond gaming, investing in a wider range of technology startups to establish a long-term presence in one of Asia’s fastest-growing digital markets.
