South Korean gaming giant Krafton is significantly strengthening its presence in India by launching a new investment vehicle worth up to $670 million (₹60 billion). The initiative, named the Unicorn Growth Fund, reflects the company’s long-term commitment to one of the world’s fastest-growing digital markets.
The fund is a joint effort between Krafton, South Korean tech major Naver, and investment firm Mirae Asset. It will be managed by Mirae Asset Venture India and is expected to be rolled out in phases over the next four years.
Fund Structure and Investment Plan
The fund is set to begin operations with an initial corpus of over ₹30 billion (around $334 million). Krafton will contribute approximately ₹12.3 billion ($137 million) at the first close, with Naver expected to invest a similar amount.
Investment sizes are likely to range between $10 million and $30 million per deal, targeting high-growth startups across sectors. Unlike traditional funds, this vehicle will not follow strict country allocation rules, offering flexibility in deployment.
Focus Beyond Gaming
While Krafton is best known for blockbuster titles like PUBG and Battlegrounds Mobile India (BGMI), the new fund signals a broader investment strategy. The company aims to back startups across multiple sectors, including fintech, content, and digital platforms, rather than limiting itself to gaming.
Krafton stated that most investments will be treated as financial bets, although deeper strategic involvement may occur depending on each company’s potential.
Strong Investment Track Record in India
Krafton has already invested over $200 million in India, supporting startups such as Cashfree, Nodwin Gaming, Loco, Pratilipi, and Kuku FM. The company has also taken steps to build a local ecosystem, including launching a gaming incubator in 2023 and acquiring a controlling stake in Nautilus Mobile earlier this year.
Regulatory Challenges and Adaptation
The company’s India journey has not been without hurdles. Its flagship game BGMI faced a government ban in 2022 before being reinstated in 2023 under strict conditions. To address regulatory concerns, Krafton made significant changes, including severing ties with Tencent and shifting its data infrastructure to Microsoft Azure.
BGMI has since crossed 240 million downloads, reaffirming its strong user base in the country.
Long-Term India Strategy
With the launch of the Unicorn Growth Fund, Krafton is clearly positioning itself as a major investor in India’s startup ecosystem. By expanding beyond gaming into broader technology sectors, the company aims to establish a deeper and more diversified presence in the region.
India’s rapidly growing internet user base and startup ecosystem make it a key market for global tech firms, and Krafton’s latest move underscores its ambition to play a significant role in shaping that growth.
