Krafton is doubling down on its India push with a new growth investment vehicle, set up by South Korea’s largest fight-to-survive game maker, to inject about $400 million–$670 million — underscoring the gaming giant’s long-term bet on the world’s biggest internet market.
The fund, to be managed by Mirae Asset Venture India, is expected to launch with an initial corpus of more than ₹30 billion (about $334.6 million), with Krafton anchoring the first close at ₹12.3 billion (about $137.2 million).
Krafton growth fund construction and strategy in India
In contrast to purely strategic corporate venture arms, although Krafton says it looks to take active roles where possible, most investments made from this vehicle will be considered financial positions, allowing the company flexibility in backing winners even beyond core gaming franchises. Engagement will depend on the opportunity — from hands-off capital to deeper collaboration when product or distribution advantages are evident. Given Mirae Asset runs the fund, deal sourcing and portfolio assistance should gain from the company’s wide-ranging India footprint and experience with consumer internet, fintech and enterprise software.
The “growth” mandate is designed to put the fund in the best position to have its hands around startups that are past early product–market fit and starting to scale both revenue and expenses — a stage where funding has been tighter, as investors demand free cash flow–positive businesses for that money. Gaming and interactive entertainment are the areas where Krafton is strongest by its nature, though it’s made clear that it wants to invest across a broad array of technology categories, keeping an eye on India’s longer-term growth into a digital economy.
The significance of India for Krafton’s growth strategy
India is a huge addressable market and mature monetization engine for mobile-first companies. According to Lumikai’s latest State of India Gaming report, the domestic games market has now surpassed $3 billion in annual revenue, with a player base numbering in the hundreds of millions and increasing in-app spend catalyzed by better payment rails and local content. Outside of gaming, the Indian fintech and creator economy have facilitated easier access to, engagement with and retention of users at scale.
Battlegrounds Mobile India, which has accumulated over 240 million downloads, is already a runaway hit for Krafton. That audience in turn gives the company both distribution reach and real-time insights into its products, as well as a marketing platform that’s hard to duplicate. By allocating more capital into adjacent sectors, Krafton is essentially constructing a broader portfolio of businesses around this user base, which diversifies platform risk and increases its exposure to India’s growth narrative.
A track record of deals and investments in India
Krafton was not even starting from the ground up for the new fund: it has already invested over $200 million in India across gaming, content and fintech. Key bets include:
- Esports and streaming: Nodwin Gaming, Loco
- Storytelling platform Pratilipi
- Audio platform Kuku FM
- Payments player Cashfree
- A commitment to venture investor IMM Investment
The company also established a game incubator to grow early teams and took a controlling share in the studio Nautilus Mobile with $14 million, to gain an established local developer into the fold.
That momentum came on the heels of a tumultuous period for its marquee title, BGMI, which had previously been banned and then allowed back into India as part of an experiment. In an effort to appease local sensitivities, Krafton made operational adjustments, like moving Indian servers to Microsoft’s Azure cloud and cutting publishing ties with Tencent for the domestic market. And as part of the reset, it also unveiled another $150 million investment commitment to India, signaling no intention to quit.
Market context and what startups can expect next
Founders at the growth stage have been facing a tougher funding environment, as global venture activity returns to normal and it takes more time to close later-stage rounds. A corpus of this size — combined with or in addition to Mirae Asset’s local team — should fill a crucial gap for later-stage but still pre-exit startups that are generating revenues, scaling and require patient capital to ensure they can expand product lines, enter new categories or think about acquisitions.
Anticipate that the fund will lean toward disciplined unit economics, strong governance and paths to profitability. For gaming and media companies, that may come in the form of mixing both ad-based and direct user payments, creating IP that traverses formats or diversifying distribution outside of a single app store. Enterprise partnerships, compliance readiness and recurring revenue are likely to figure prominently in diligence for fintech and, more broadly, tech plays.
Risks to consider and what investors should watch
India’s regulatory environment is still mutable, particularly related to data, payments and online content. Krafton’s handling of BGMI is a textbook example of the benefits of proactive compliance, transparent data practices and localized operations. Exchange-rate shifts and public-market exit windows are other variables facing a growth fund of this size.
The larger play, though, is strategic: by combining a financial-first mandate with on-the-ground expertise, Krafton is giving itself optionality. If portfolio companies integrate into its ecosystem, Krafton can strengthen bonds; if they don’t, it still shares in the upside of India’s digital growth. For founders, that formula — capital plus category know-how — could be key to surviving a tough funding market and growing into regional leaders.
