Krafton’s Strategic Expansion in India: Beyond Gaming
Krafton, the prominent South Korean gaming powerhouse known for developing PUBG and Battlegrounds Mobile India (BGMI), is set to deepen its footprint in India by investing an additional $250 million over the next three to four years. This ambitious move marks a significant step as the company broadens its horizons beyond gaming into cutting-edge areas such as artificial intelligence (AI), robotics, and deep technology.
With this fresh capital infusion, Krafton’s total planned investment in India will exceed $500 million, building on the more than $250 million it has already poured into the market since 2021. These investments are supplementary to a previously announced $670 million India-focused growth fund, launched in partnership with South Korean internet giant Naver and investor Mirae Asset in December 2025. At the fund’s initial close, Krafton committed approximately $137 million. Importantly, the new $250 million pledge stands apart from this growth fund, underscoring Krafton’s strong confidence in India’s burgeoning tech ecosystem.
India: A Critical Market for Krafton
India represents a vital market for Krafton, offering access to the world’s largest population with over a billion internet subscribers and more than 700 million smartphone users. Krafton initially established its presence in India through gaming, spearheaded by BGMI—a reimagined and localized version of PUBG that has achieved over 260 million downloads. Over time, the company has strategically diversified its portfolio by investing in Indian startups, thereby extending its influence beyond gaming into technology and innovation sectors.
Despite promising growth, Krafton’s journey in India has encountered challenges. In 2020, the Indian government banned PUBG Mobile amid escalating geopolitical tensions with China, alongside hundreds of other Chinese-linked applications. In response, Krafton launched BGMI in 2021, cutting ties with Tencent Games as the publisher and relocating game servers to Microsoft’s Azure platform to address regulatory concerns.
However, in 2022, BGMI itself faced a ban in India. The federal government later permitted its return on a trial basis in 2023, signaling a cautious but optimistic path forward. Since then, Krafton has continued to build upon the BGMI franchise and plans to introduce BGMI Lite by the end of 2026, aiming to capture an even broader segment of Indian gamers.
Investments and Local Growth Initiatives
Undeterred by regulatory hurdles, Krafton has steadily increased its investments in India, backing approximately 18 companies across various sectors, including four to five gaming studios. Notable investments include Nodwin Gaming, Loco, Pratilipi, Kuku FM, and One Impression. These strategic partnerships underscore Krafton’s commitment to nurturing India’s digital and gaming ecosystems.
Further strengthening its local presence, Krafton acquired Pune-based Nautilus Mobile in 2025, the studio behind the popular Real Cricket franchise. The company has also launched the KIGI Academy, an industry-academia collaboration designed to cultivate talent in game development and digital content creation, addressing the growing demand for skilled professionals in India’s tech and gaming industries.
The renewed investment announcement followed a high-profile meeting between Krafton chairman Chang Byung-gyu and Indian Prime Minister Narendra Modi in New Delhi, where both leaders explored opportunities for enhanced collaboration between India and South Korea in gaming, technology, and emerging sectors.
Krafton’s substantial investment and strategic initiatives illustrate a long-term vision that goes well beyond gaming, positioning India as a central hub for innovation in AI, robotics, and deep technology. This commitment not only reflects the company’s belief in India’s potential but also signals an evolving partnership that could shape the future of digital entertainment and tech-driven industries in the region.
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