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| Source: KRAFTON INDIA |
Krafton, the South Korean studio behind blockbusters like PUBG and Battlegrounds Mobile India (BGMI), is doubling down on its India bet with a massive new growth investment initiative. The company is teaming up with two other Korean powerhouses—Naver and Mirae Asset—to create a dedicated fund that will back the next wave of Indian tech and gaming success stories.
What Is the Unicorn Growth Fund?
Krafton’s new vehicle is called the Unicorn Growth Fund, and it is designed specifically to invest in high-potential Indian startups across technology, gaming, content, and fintech.
- The total deployment target is up to ₹60 billion (around $669 million) over four years.
- The fund will be managed by Mirae Asset Venture India, giving it local investment expertise combined with Korean capital and global networks.
- Operations are expected to begin with an initial corpus of over ₹30 billion (about $335 million), providing substantial dry powder right from day one.
Who Is Backing the Fund?
Three major players are joining forces for this initiative, each bringing different strengths to the table.
- Krafton will contribute about ₹12.3 billion (roughly $137 million) in the first close, signaling strong conviction in India as a long-term market.
- Naver, one of South Korea’s largest internet companies, is expected to contribute capital on a scale “broadly comparable” to Krafton’s commitment, adding additional heft to the fund.
- Mirae Asset, already an active investor in India, will oversee fund management and investment execution through its local venture arm.
Investment Strategy and Ticket Size
Unlike a purely strategic corporate fund, Krafton and its partners are positioning this as a growth-oriented investment vehicle with flexibility.
- Typical cheque sizes are expected to range from $10 million to $30 million, positioning the fund to participate in Series B–D and late-stage growth rounds.
- The fund will not follow rigid country-allocation rules, but India clearly sits at the center of its thesis, with a focus on scaling companies in high-growth digital sectors.
- While investments will primarily be treated as financial positions, engagement levels with portfolio companies may vary based on strategic fit and long-term potential.
Krafton’s Existing Bets in India
This new fund builds on several years of active investment and experimentation by Krafton in the Indian ecosystem.
- So far, Krafton has deployed over $200 million in India across gaming, content, and fintech.
- Its portfolio includes well-known names like Nodwin Gaming, game-streaming platform Loco, storytelling platform Pratilipi, audio content platform Kuku FM, fintech player Cashfree, and venture fund IMM Investment.
- Krafton also launched a gaming incubator in India in 2023 and recently acquired a controlling stake in Indian game studio Nautilus Mobile for around $14 million, strengthening its local development capabilities.
BGMI, Regulation, and the Road Back
Krafton’s India journey has not been smooth, especially around its flagship title BGMI.
- The Indian government banned BGMI in 2022, citing security and regulatory concerns, before allowing its return in 2023 after a three-month trial period.
In response, Krafton committed an additional $150 million of investment to India and implemented several operational changes to align with regulations, including:
- Cutting publishing ties with Tencent for the Indian market.
- Migrating Indian game servers to Microsoft’s Azure cloud to address data security sensitivities.
- BGMI itself, launched in 2021 as a localized version of PUBG Mobile, has surpassed 240 million downloads in India, underlining the franchise’s massive appeal despite earlier bans.
Beyond Gaming: A Long-Term India Play
With the Unicorn Growth Fund, Krafton is clearly signaling that its India ambitions go far beyond a single game.
- The company now wants to back a broader spectrum of technology startups—spanning digital content, fintech, gaming infrastructure, and other high-growth verticals.
- By partnering with Naver and Mirae Asset, Krafton is effectively turning India into a core pillar of its global growth strategy, rather than just a large gaming market.
- For Indian founders, especially in gaming and consumer tech, this fund represents a new, deep-pocketed source of capital that understands both global gaming ecosystems and local digital consumption patterns.
For the Indian startup ecosystem, Krafton’s latest move is more than just another fund announcement—it is a strong vote of confidence in India’s potential to produce the next generation of global tech and gaming leaders.