BGMI parent sets up $670M fund to invest in India
BGMI parent sets up $670M fund to invest in India
Krafton, the South Korean gaming giant behind popular titles like PUBG and Battlegrounds Mobile India (BGMI), is launching a growth investment fund focused on India.
The move comes as part of Krafton's strategy to tap into the world's largest internet user base.
The fund, dubbed the Unicorn Growth Fund, is a joint effort between Krafton, South Korean internet conglomerate Naver, and investor Mirae Asset.
Fund to be invested over 4 years
The Unicorn Growth Fund plans to invest up to ₹60 billion (about $670 million) over the next four years.
It will be managed by Mirae Asset Venture India and is expected to be set up in January.
The fund will start with an initial corpus of over ₹30 billion (around $335 million), with Krafton committing ₹12.3 billion (approximately $137 million) at the first close, according to TechCrunch.
Naver's capital commitment to match Krafton's investment
Naver's capital commitment is expected to be "broadly comparable" to Krafton's $137 million investment, a company spokesperson told TechCrunch.
The fund won't have strict country-allocation limits and typical ticket sizes will be between $10 million and $30 million.
Investments through this new fund will mainly be treated as financial positions rather than strategic bets, though the level of engagement with portfolio companies may vary depending on each business' opportunity and long-term potential.
Previous investments in India exceed $200 million
Krafton has previously invested over $200 million in India, supporting companies in the gaming, content, and fintech sectors.
Recent investments include fintech Cashfree, as well as earlier bets on gaming/content platforms Nodwin Gaming, Loco, Pratilipi, and Kuku FM.
The company also launched a gaming incubator in India in 2023 and acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million earlier this year.
Krafton's expansion in India faces challenges
Krafton's expansion in India hasn't been without hurdles. The company faced a major setback when New Delhi banned BGMI, its flagship local title, in 2022.
However, the game was allowed to return after a three-month trial approval period.
In response to these challenges, Krafton announced a $150 million investment commitment in the country.
New fund aims to diversify investments
With the new fund, Krafton hopes to expand its India strategy beyond gaming.
The company plans to invest in a wider range of technology startups as part of its long-term presence in one of Asia's fastest-growing digital markets.
This move marks a major shift for Krafton, which has primarily focused on gaming in the Indian market so far.