South Korean gaming company Krafton is expanding its India strategy as it looks to develop new gaming franchises beyond its successful PUBG business. The company is in advanced discussions to acquire another Indian game development studio and is searching for locally developed titles that could become global hits, according to an interview with Krafton India CEO Sean Hyunil Sohn reported by Bloomberg and The Economic Times on November 3, 2026.
India has become one of Krafton’s top five markets by revenue, supported by the popularity of Battlegrounds Mobile India (BGMI). The company has already invested approximately $250 million in India’s digital entertainment, gaming and fintech ecosystem. It is now looking to strengthen its local development capabilities, expand its Bengaluru team and use artificial intelligence to address the shortage of experienced game developers.
Krafton Wants Its Next Global Gaming Hit From India
Krafton is best known globally for PUBG: Battlegrounds and PUBG Mobile. In India, its business is closely associated with BGMI, the locally adapted version of PUBG Mobile launched in 2021.
However, the company wants to reduce its dependence on a single major gaming franchise by developing new intellectual property (IP).
According to Sohn, Krafton is actively searching for its next major gaming title in India. The company believes Indian developers have the technical capabilities and creative potential to build games that can attract audiences beyond the domestic market.
The strategy involves identifying promising local studios, supporting game development and building original titles that could eventually become long-term franchises.
Creating a successful gaming IP is difficult because players have access to thousands of games across mobile, PC and console platforms. Established titles also benefit from loyal communities and regular content updates.
Krafton is therefore looking for development teams with proven experience rather than relying entirely on inexperienced studios.
Krafton in Advanced Talks to Acquire Another Indian Gaming Studio
One of the most significant parts of Krafton’s India strategy is its plan to acquire another local game development studio.
Sohn said the company is in advanced discussions regarding a potential acquisition. Krafton is particularly interested in studios that have completed at least one or two development cycles, giving it greater confidence in their ability to build and release games.
The company is looking for teams with demonstrated development capabilities rather than simply acquiring businesses for their existing user numbers.
This approach could help Krafton gain access to experienced developers, established production processes and intellectual property that can be developed further.
The proposed acquisition would follow Krafton’s purchase of a controlling stake in Pune-based Nautilus Mobile, the developer behind the Real Cricket franchise.
In March 2025, Krafton announced that it had acquired the controlling stake in Nautilus Mobile through a transaction valued at ₹118 crore. It described the deal as its first control acquisition in India.
The acquisition gave Krafton a stronger presence in India’s sports gaming segment and access to a locally developed franchise with an established audience.
Bengaluru Development Team Could Grow to 50 Employees
Krafton currently has a core development team of approximately 12 employees in Bengaluru.
The company plans to expand the team to as many as 50 people over the next two years, according to Sohn.
The Bengaluru team is working on diversifying Krafton’s gaming portfolio and developing titles beyond the traditional battle royale genre.
Artificial intelligence is expected to play a role in this expansion. Krafton believes AI tools could help address the shortage of experienced gaming talent in India and improve development efficiency.
Game development requires expertise across several areas, including programming, animation, game design, sound engineering, testing and production management.
AI-assisted tools could support developers with certain repetitive tasks, accelerate workflows and help smaller teams produce more complex gaming experiences. However, creative direction, game design and the development of engaging gameplay will continue to require skilled human teams.
The proposed expansion would strengthen Krafton’s ability to develop and evaluate games locally rather than relying entirely on studios outside India.
BGMI Approaches 270 Million Downloads in India
BGMI remains central to Krafton’s Indian business.
The game has reportedly approached 270 million downloads, making it one of the country’s most widely recognised mobile gaming titles.
India is now among Krafton’s top five markets by revenue, demonstrating the commercial importance of the country to the South Korean company.
BGMI has helped Krafton establish a large player community, develop local partnerships and build a presence in India’s esports ecosystem.
However, the company wants to use this foundation to introduce additional gaming experiences.
Its strategy includes expanding beyond battle royale games and exploring different genres that could attract new audiences. The company also wants Indian studios to create intellectual property that can be marketed internationally.
For Krafton, the objective is not simply to publish more games in India but to develop titles that can become globally recognised franchises.
Krafton’s ₹250 Million Investment in India’s Digital Ecosystem
Krafton said it had invested approximately $250 million in India’s digital entertainment, gaming and fintech sectors as of September 2026.
Its investments extend beyond gaming studios into companies operating in other parts of the digital economy.
Some of its notable Indian investments and partnerships include:
| Company | Sector |
|---|---|
| Nautilus Mobile | Mobile game development |
| Nodwin Gaming | Esports and gaming entertainment |
| Loco | Game streaming |
| Pratilipi | Digital content and storytelling |
| Kuku FM | Audio entertainment |
| One Impression | Creator economy |
Krafton’s acquisition of Nautilus Mobile is particularly important because it represents direct ownership of an Indian game development studio.
The company has also participated in investments supporting India’s wider startup ecosystem.
In March 2026, Krafton partnered with South Korean internet company Naver and Mirae Asset to co-anchor an India-focused Unicorn Growth Fund with a reported corpus of ₹6,000 crore. The fund is managed by Mirae Asset and focuses on growth-stage businesses across areas including AI, deep technology, gaming and interactive media.
Another $250 Million Planned for AI and Robotics
Krafton’s India ambitions extend beyond gaming.
The company has separately committed another $250 million towards opportunities in AI and robotics across the South Asian region.
This investment commitment is intended to strengthen its exposure to emerging technologies and create connections between its digital entertainment business and other technology sectors.
The additional commitment should be distinguished from the approximately $250 million Krafton has already invested in India’s digital entertainment, gaming and fintech ecosystem. It is a separate investment plan rather than money already deployed.
The company’s interest in AI also aligns with its plans to use the technology in game development and operational workflows.
Krafton has increasingly discussed AI as a way to improve productivity and explore new applications for technologies developed through gaming.
Why India Is Becoming Important for Global Game Developers
India offers gaming companies access to a large smartphone user base, software engineering talent and a growing digital entertainment market.
The country has also developed a wider ecosystem of game publishers, esports organisers, content creators and independent development studios.
However, Indian game developers have historically faced challenges in creating original titles that achieve sustained global success.
Many local companies have concentrated on mobile games, outsourcing and publishing rather than building internationally recognised original franchises.
Krafton’s investment strategy reflects an attempt to address this gap by providing capital, development experience and access to international publishing networks.
Its acquisition strategy could also help established studios scale their operations and compete in international markets.
The Bigger Picture
Krafton’s India expansion reflects a broader shift in the global gaming industry. Large publishers are increasingly looking beyond their home markets for new development talent, original intellectual property and opportunities to diversify their gaming portfolios.
India’s strength in software engineering and its large gaming audience make it an attractive market, but building globally successful games requires more than technical talent. Studios must also understand player behaviour, develop compelling gameplay, manage live operations and invest in long-term community engagement.
For Krafton, the challenge will be turning its investments and local partnerships into successful games that can compete internationally. Its proposed studio acquisition and Bengaluru team expansion are steps towards building that capability.
Looking Ahead
Krafton is expected to continue expanding its Indian operations through acquisitions, local game development and investments in technology businesses. The potential acquisition of another Indian studio could provide additional development talent and strengthen its efforts to create new gaming franchises beyond PUBG.
The company’s longer-term success will depend on whether Indian development teams can produce games that attract and retain players in global markets. With BGMI providing an established business foundation, Krafton is now looking to build its next generation of gaming intellectual property from India.
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