Krafton Launches $670M Fund to Boost India Investments
▼ Summary
– Krafton, the South Korean gaming company, is launching a new growth investment fund in India in collaboration with Naver and Mirae Asset, aiming to deploy up to $669.3 million over four years.
– The Unicorn Growth Fund, managed by Mirae Asset Venture India, will begin operations in January with an initial size of over $334.6 million, with Krafton and Naver each contributing approximately $137 million.
– The fund’s investments, typically between $10 million and $30 million, will be treated primarily as financial positions, though engagement with portfolio companies will vary based on opportunity.
– This fund expands Krafton’s existing investment strategy in India, where it has already invested over $200 million in gaming, content, and fintech companies like Nodwin Gaming and Cashfree.
– Krafton’s push into India follows regulatory challenges, including the temporary ban of its game BGMI, and aims to build a long-term presence by investing in a wider set of technology startups beyond gaming.
Krafton, the South Korean video game developer responsible for global sensations like PUBG and its Indian counterpart Battlegrounds Mobile India (BGMI), is significantly deepening its commitment to the Indian market. The company is establishing a major new growth investment fund, signaling a strategic push to capitalize on the country’s vast digital population and burgeoning startup ecosystem. This move represents a calculated expansion beyond its core gaming business into broader technology investments.
Named the Unicorn Growth Fund, this initiative is a joint venture between Krafton, the South Korean internet giant Naver, and the financial firm Mirae Asset. The partners plan to inject up to ₹60 billion, approximately $669.3 million, into the Indian market over the coming four years. Management of the fund will be handled by Mirae Asset Venture India, with operations slated to begin in January. The initial phase will see a fund size exceeding ₹30 billion ($334.6 million), to which Krafton will contribute ₹12.3 billion ($137.2 million). Naver is expected to commit a similar amount, bringing substantial firepower to the venture.
Unlike some geographically focused funds, this one will not impose strict country-specific allocation limits. Investments are anticipated to typically fall within the $10 million to $30 million range. Krafton has clarified that while these investments will primarily be treated as financial holdings, the level of strategic involvement with each portfolio company may vary based on the specific opportunity and its long-term outlook.
This fund builds upon Krafton’s established track record in India, where it has already deployed over $200 million. Its portfolio includes a diverse mix of gaming, content, and fintech ventures such as Nodwin Gaming, Loco, Pratilipi, Kuku FM, and fintech platform Cashfree. The company also operates a gaming incubator and recently acquired a controlling stake in Indian game studio Nautilus Mobile for $14 million. However, Krafton’s journey in India has faced challenges, most notably the 2022 ban of BGMI. The title was permitted to return in 2023 after a trial period, following operational changes by Krafton including severing publishing ties with Tencent and migrating data to Microsoft Azure servers. BGMI has achieved a staggering 240 million downloads since its 2021 launch as a localized version of the previously banned PUBG Mobile.
Through this substantial new financial vehicle, Krafton aims to diversify its Indian strategy. The goal is to foster a long-term presence in this high-growth market by channeling capital into a wider array of technology startups, moving its focus beyond just the gaming sector to tap into India’s broader digital transformation.
(Source: TechCrunch)
