Krafton, the South Korean gaming company behind Battlegrounds Mobile India (BGMI), has expanded its India investment strategy beyond gaming, with its cumulative investments in the country’s startups and technology ecosystem approaching $900 million. The company is increasingly targeting consumer internet, artificial intelligence, fintech, deep tech, digital content and gaming, reflecting its belief that India can produce technology companies with global potential.
The investment push is being supported by a combination of direct investments, fund commitments and strategic partnerships. Krafton has already invested more than $250 million directly in Indian startups since 2021 and has backed India-focused investment vehicles, including the ₹6,000 crore Unicorn Growth Fund with Naver and Mirae Asset. The company has also partnered with India’s Department for Promotion of Industry and Internal Trade (DPIIT) to support startups working across gaming, interactive media and AI.
Krafton Expands India Investment Ambitions
Krafton’s India strategy has evolved significantly since the company entered the country with its gaming business.
The company initially focused primarily on building BGMI and developing India’s gaming ecosystem.
It is now using its capital and global network to invest in a much broader group of technology companies.
| Krafton’s India Investment Strategy | Details |
|---|---|
| Direct startup investments since 2021 | $250 million+ |
| Broader India investment commitment | Approaching $900 million |
| India-focused Unicorn Growth Fund | ₹6,000 crore |
| UGF target | Up to ~₹6,000 crore |
| Krafton’s initial UGF commitment | ~$137 million |
| Key investment areas | Consumer internet, AI, fintech, gaming, deep tech |
| India entry | 2021 |
| Major gaming product | BGMI |
The expansion demonstrates that Krafton increasingly views India as a technology and consumer opportunity rather than simply a gaming market.
Why Is Krafton Investing Beyond Gaming?
India has one of the world’s largest internet user populations and a rapidly expanding digital economy.
The country’s consumer internet market has produced companies across:
- E-commerce
- Fintech
- Digital brands
- Food delivery
- Mobility
- SaaS
- Gaming
- Artificial intelligence
Krafton believes its experience in building consumer products can be useful beyond gaming.
Krafton’s Investment Thesis
India’s large digital population
↓
Growing consumer spending
Technology adoption
Startup ecosystem
↓
New consumer internet companies
↓
AI and deep-tech innovation
↓
Potential global technology leaders
The strategy gives Krafton exposure to India’s broader digital economy.
Krafton Has Already Invested More Than $250 Million Directly
Krafton has invested more than $250 million in Indian startups since 2021.
The company’s portfolio spans interactive entertainment, gaming, esports and technology.
Its investments have included companies working in areas such as consumer brands, advertising technology, live events and digital entertainment.
Direct Investment Growth
2021
↓
Krafton enters Indian startup ecosystem
↓
Gaming investments
↓
Consumer internet
↓
Digital entertainment
↓
Technology
↓
AI and deep tech
↓
$250 million+ invested directly
This is separate from the capital Krafton is committing through India-focused funds.
The ₹6,000 Crore Unicorn Growth Fund Is a Major Bet
One of Krafton’s biggest India initiatives is the Unicorn Growth Fund, created alongside Naver and Mirae Asset.
The fund has been positioned as a ₹6,000 crore vehicle for investing in high-growth Indian technology companies.
Mirae Asset Venture Investments manages and advises the fund.
| Unicorn Growth Fund | Details |
|---|---|
| Target corpus | ₹6,000 crore |
| Approximate dollar value | ~$720 million |
| Partners | Krafton, Naver, Mirae Asset |
| Fund manager | Mirae Asset Venture Investments |
| Target companies | High-growth Indian startups |
| Key sectors | AI, consumer internet, deep tech, gaming |
| Krafton’s initial commitment | ~$137 million |
The fund expands Krafton’s ability to participate in India’s startup ecosystem beyond individual investments.
What Will the Unicorn Growth Fund Invest In?
The fund has a broad mandate.
Its focus includes consumer internet companies, digital marketplaces, consumer-focused businesses, AI and software companies and deep-tech startups.
Investment Themes
Consumer internet
Digital marketplaces
Consumer brands
AI and software
Semiconductors
Robotics
Space technology
Advanced materials
↓
Indian technology companies
The strategy gives the fund exposure to both established digital businesses and emerging deep-tech sectors.
AI Is Becoming a Major Focus
Artificial intelligence has become one of the most important parts of Krafton’s India strategy.
The company is looking for opportunities in generative AI, enterprise software and other AI-driven businesses.
This reflects the rapid growth of India’s AI ecosystem.
AI Investment Opportunity
Indian engineering talent
Large digital market
Growing enterprise AI adoption
Lower development costs
Global demand
↓
AI startups
↓
Potential global companies
Krafton’s focus on AI also aligns with its own transformation into a more technology-driven gaming company.
Krafton Is Building Its Own AI Capabilities
The company’s interest in AI extends beyond investment.
Krafton has been developing AI technologies for gaming, including AI-powered characters and systems designed to create more dynamic game experiences.
The company has also been investing in AI infrastructure.
Its 2025 earnings materials highlighted plans around a GPU cluster and AI research involving large language models, game AI and AI workflow processing.
Krafton’s AI Strategy
AI infrastructure
↓
AI models
↓
Game AI
↓
AI characters
↓
Interactive experiences
↓
New gaming products
The company’s investment in Indian AI startups could therefore complement its own technology development.
Deep Tech Is Another Priority
Krafton’s investment strategy increasingly includes deep technology.
The Unicorn Growth Fund’s mandate includes areas such as:
- Semiconductors
- Robotics
- Space technology
- Advanced materials
- Artificial intelligence
- Enterprise software
These sectors typically require more capital and longer development cycles than conventional consumer internet startups.
Deep-Tech Investment Cycle
Research
↓
Prototype
↓
Testing
↓
Commercialization
↓
Scale
↓
Global market
Krafton’s long-term capital could be useful for startups operating across this cycle.
Consumer Internet Remains Central
Despite the growing focus on AI and deep tech, consumer internet remains a major part of Krafton’s India thesis.
The company has invested in businesses targeting India’s expanding digital consumer population.
This includes areas such as:
- Consumer technology
- Digital brands
- Content
- Gaming
- Entertainment
- Marketplaces
- Fintech
India’s Consumer Internet Opportunity
900 million+ internet users
Mobile-first population
Digital payments
Growing online consumption
Rising disposable income
↓
Large consumer internet market
Krafton sees opportunities to apply its consumer-product expertise across these categories.
Krafton Has Backed Multiple India-Focused Funds
Krafton’s India strategy is not limited to its own balance sheet.
The company has also become a limited partner in multiple India-focused investment funds.
These include funds focused on gaming, consumer technology and deep tech.
Krafton’s Fund Strategy
Direct investments
Fund investments
Strategic partnerships
Incubation
↓
Broader startup exposure
↓
India technology ecosystem
This approach allows Krafton to diversify its exposure across dozens of companies rather than relying only on direct investments.
IMM India Fund Was an Earlier Investment
In 2024, Krafton became an anchor investor in IMM Investment’s maiden India fund.
The fund focuses on sectors including:
- Consumer brands
- Consumer technology
- SaaS
- Fintech
- Gaming
- Media
- Deep tech
The investment marked an early example of Krafton using external fund managers to broaden its India portfolio.
IMM India Fund Strategy
Krafton
↓
Anchor investor
↓
IMM India Fund
↓
Growth-stage startups
↓
Consumer + technology + gaming + deep tech
This strategy complements Krafton’s direct startup investments.
Krafton Has Also Invested in Bitkraft
In June 2026, Krafton India announced a strategic investment in the global fund managed by Bitkraft Ventures.
The partnership focuses on early-stage founders building gaming, interactive media and emerging technology platforms.
The size of Krafton’s investment was not disclosed.
Bitkraft Partnership
Krafton
Bitkraft Ventures
↓
Early-stage founders
↓
Gaming
Interactive media
Emerging technology
↓
Global opportunities
The partnership gives Krafton access to a wider international pipeline of startups.
DPIIT Partnership Expands Krafton’s Ecosystem Role
Krafton India signed a memorandum of understanding with DPIIT in March 2026.
The partnership is designed to support startups, innovators and entrepreneurs working in digital entertainment, online gaming, esports, interactive media and AI.
The initiative includes mentorship, workshops, hackathons and industry engagement.
DPIIT + Krafton
Startups
↓
Mentorship
Hackathons
Workshops
Industry knowledge
Potential pilot projects
↓
Product development
↓
Commercialization
The partnership gives Krafton a role in India’s broader startup ecosystem rather than simply acting as an investor.
The Partnership Targets AI Applications
The DPIIT collaboration specifically includes artificial intelligence applications.
The two organizations plan to explore innovation challenges and programs focused on AI, game design, animation, immersive technologies and esports management.
This could create opportunities for Indian startups to work directly with Krafton.
Innovation Pipeline
Indian startup
↓
Innovation challenge
↓
Proof of concept
↓
Krafton industry engagement
↓
Potential pilot
↓
Commercial opportunity
The model could help startups move beyond funding toward actual industry adoption.
Krafton Wants Indian Games for Global Markets
Krafton’s India strategy also includes developing games locally that can potentially be exported globally.
The company has indicated that it wants to build Indian gaming talent and create original intellectual property.
This is a shift from simply publishing international games in India.
Old Model
Global game
↓
Indian market
↓
Local distribution
New Model
Indian developers
↓
Indian IP
↓
Indian players
Global players
↓
International game exports
This could create a larger opportunity for India’s game-development ecosystem.
BGMI Remains Krafton’s Core Indian Product
Battlegrounds Mobile India remains central to Krafton’s India business.
The game has built a massive user base and helped Krafton establish a strong brand among Indian gamers.
The company has used BGMI’s popularity to build relationships with developers, esports organizations and gaming communities.
BGMI Ecosystem
Players
Esports
Creators
Game developers
Brands
↓
Gaming ecosystem
↓
Krafton India
The company’s broader investment strategy is designed to build on this ecosystem.
Krafton Is Supporting Indian Game Developers
The company operates the Krafton India Gaming Incubator, or KIGI.
The program provides selected game developers with funding, mentorship and access to industry expertise.
The incubator has received applications from developers across India, including significant interest from Tier-2 and Tier-3 cities.
KIGI Model
Game developer
↓
Application
↓
Selection
↓
Funding
Mentorship
Resources
↓
Game development
↓
Potential launch
This gives Krafton a direct pipeline into India’s emerging gaming talent.
Why Tier-2 and Tier-3 Cities Matter
India’s gaming ecosystem is increasingly expanding beyond Bengaluru, Mumbai and other major technology centres.
Developers in smaller cities can access global development tools and distribution platforms without relocating.
Krafton’s incubator strategy could help identify talent in these markets.
India’s Gaming Talent Pipeline
Tier-1 cities
Tier-2 cities
Tier-3 cities
↓
More developers
↓
More game concepts
↓
More Indian IP
↓
Potential global hits
This could help broaden India’s gaming industry.
Krafton’s India Strategy Is Becoming More Like a Venture Platform
The company is increasingly acting like a strategic investor rather than simply a game publisher.
Its activities now span:
- Direct startup investments
- Fund commitments
- Incubation
- AI partnerships
- Government programs
- Gaming development
- Technology investments
Krafton as an Investment Ecosystem
Capital
Gaming expertise
Technology
Global distribution
Mentorship
↓
Indian startups
↓
Scale
↓
Global expansion
This model could generate strategic value beyond financial returns.
Why India Is Attractive to Krafton
India combines several factors that are attractive to technology investors.
The country has:
- A huge digital population
- Large developer talent pool
- Rapid smartphone adoption
- Growing consumer spending
- Expanding digital payments
- Strong startup activity
- Rising AI adoption
India’s Technology Advantage
Large market
Talent
Lower development costs
Digital infrastructure
Entrepreneurial ecosystem
↓
Global technology opportunity
Krafton believes these factors can produce companies capable of competing internationally.
The Investment Push Is Also Strategic for South Korea
Krafton’s India strategy strengthens economic and technology connections between South Korea and India.
The involvement of Naver and Mirae Asset expands the relationship beyond gaming.
India-South Korea Technology Link
Krafton
Naver
Mirae Asset
↓
Indian startups
↓
Technology
Capital
Global expertise
↓
India-South Korea business ties
The Unicorn Growth Fund is one of the largest examples of this cross-border investment strategy.
The $900 Million Figure Needs Context
Krafton’s reported India investment commitment approaching $900 million should not be interpreted as a single cheque or a single fund.
It reflects a broader investment strategy involving direct startup investments, fund commitments and ecosystem initiatives.
Krafton has separately disclosed more than $250 million in direct investments in Indian startups since 2021.
Investment Structure
Direct startup investments
↓
$250 million+
India-focused funds
Unicorn Growth Fund
Other strategic investments
↓
Broader India commitment
↓
Approaching $900 million
This distinction is important when assessing the scale of Krafton’s India bet.
Krafton’s India Bet Is Becoming More Diversified
The company’s early India strategy was heavily concentrated in gaming.
Its current strategy is much broader.
Evolution of Krafton’s India Bet
2021
↓
Gaming and startup investments
↓
2024
↓
IMM India Fund
↓
2025
↓
₹6,000 crore Unicorn Growth Fund announced
↓
2026
↓
AI + consumer internet + deep tech
↓
DPIIT partnership
↓
Bitkraft investment
↓
Broader technology ecosystem
The diversification reflects Krafton’s growing confidence in India’s digital economy.
What Krafton Gains From Consumer Internet Investments
Consumer internet investments can give Krafton exposure to businesses with large user bases.
These companies may also create opportunities for cross-industry partnerships.
For example, gaming companies can collaborate with:
- Consumer brands
- Content platforms
- Fintechs
- Social media
- Advertising technology
- E-commerce
Consumer Internet Synergies
Gaming
Content
Commerce
Fintech
Advertising
↓
Digital consumer ecosystem
Krafton’s gaming expertise can potentially create strategic value across this ecosystem.
AI Could Create New Gaming Opportunities
AI is likely to change how games are created and played.
Potential applications include:
- AI characters
- Automated game testing
- Content generation
- Personalized gameplay
- Procedural worlds
- Player behavior analysis
- Game development assistance
Krafton’s investments in AI could therefore directly benefit its core gaming business.
AI + Gaming
Generative AI
↓
Characters
Worlds
Dialogue
Assets
Game testing
↓
Lower development costs
More personalized experiences
↓
New gaming models
This is one reason Krafton is investing in AI both internally and externally.
The Investment Strategy Carries Risks
The India opportunity is large, but startup investing remains risky.
Many early-stage companies fail to achieve commercial scale.
Krafton therefore faces risks including:
- Startup failures
- High valuations
- Competition for deals
- Regulatory changes
- Slow consumer spending
- AI investment uncertainty
- Long technology development cycles
Investment Risk
Large capital allocation
↓
Startup investment
↓
Technology and market risk
↓
Potential high return
OR
↓
Startup failure
↓
Capital loss
The company’s diversified portfolio can help spread some of these risks.
Deep-Tech Investments Have Longer Payback Periods
Consumer internet businesses can sometimes scale quickly.
Deep-tech companies often require years of research and development before reaching commercial scale.
This means Krafton’s investment strategy increasingly requires patience.
Deep-Tech Timeline
Research
↓
Prototype
↓
Testing
↓
Regulatory approval
↓
Manufacturing
↓
Commercial launch
↓
Revenue
The longer timeline can make deep-tech investing more capital intensive.
The Unicorn Growth Fund Could Become a Major Capital Source
The ₹6,000 crore fund gives Krafton and its partners the ability to invest at a much larger scale.
If fully deployed, it could provide growth-stage Indian startups with substantial capital.
Fund Deployment
₹6,000 crore
↓
Growth-stage startups
↓
AI
Consumer internet
Deep tech
Gaming
↓
Scale
↓
Potential unicorns
↓
Global companies
The fund’s success will ultimately depend on the quality of its investments and exits.
What Startups Can Gain
Krafton’s involvement can offer startups more than capital.
Potential benefits include:
- Industry expertise
- Global connections
- Product feedback
- Consumer insights
- Gaming expertise
- Access to South Korean technology companies
- International exposure
Capital + Strategic Support
Funding
Mentorship
Global network
Technology expertise
↓
Startup growth
↓
International expansion
This can be particularly valuable for startups targeting global consumers.
What Investors Will Watch
Krafton’s India investment strategy will increasingly be judged by financial returns.
Investors will watch:
- Startup valuations
- Portfolio company growth
- Follow-on funding
- IPOs
- Acquisitions
- Strategic partnerships
- Revenue growth
- Exit multiples
The ability to generate successful exits will determine whether the strategy becomes financially sustainable.
Key Numbers at a Glance
~$900 million
Krafton’s broader India investment commitment, according to reports
$250 million+
Direct investment in Indian startups since 2021
₹6,000 crore
Target size of the Unicorn Growth Fund
~$720 million
Approximate dollar value of the Unicorn Growth Fund
~$137 million
Krafton’s initial commitment to the fund
3
Key partners in the Unicorn Growth Fund: Krafton, Naver and Mirae Asset
2021
Year Krafton began its current India startup investment push
2024
Year Krafton became an anchor investor in IMM Investment’s India fund
2026
Year Krafton expanded its India strategy through DPIIT and AI initiatives
What This Means for Indian Startups
Krafton’s growing investment could provide another major source of capital for Indian startups.
The company’s focus on consumer internet, AI and deep tech is particularly significant because these sectors require substantial growth capital.
The involvement of a global strategic investor can also provide international credibility.
Funding Ecosystem
Indian startup
↓
Krafton investment
Naver
Mirae Asset
Other investors
↓
More capital
↓
Faster growth
↓
Global expansion
The trend could encourage more South Korean companies to increase their investments in India.
What This Means for India’s AI Ecosystem
Krafton’s focus on AI adds to the growing pool of international capital entering India’s artificial intelligence sector.
AI startups can potentially benefit from:
- Funding
- Global partnerships
- Compute resources
- Product expertise
- Enterprise connections
- International market access
India is increasingly positioning itself as a major location for AI development and deployment.
The Bigger Technology Opportunity
Krafton’s India strategy reflects a broader trend among global companies.
Instead of simply selling products to Indian consumers, international technology companies are increasingly investing in Indian startups and helping create products locally.
From Market to Innovation Hub
India as consumer market
↓
Foreign companies enter
↓
Local partnerships
↓
Startup investments
↓
Technology development
↓
Indian products
↓
Global exports
Krafton’s push is an example of this shift.
Looking Ahead
Krafton’s India strategy has evolved from a gaming-focused expansion into a much broader technology investment programme spanning consumer internet, AI, fintech, gaming, digital content and deep tech. The company has already invested more than $250 million directly in Indian startups since 2021 and is participating in larger investment vehicles, including the ₹6,000 crore Unicorn Growth Fund with Naver and Mirae Asset. Its partnership with DPIIT and continued investment in gaming and AI capabilities further demonstrate that Krafton increasingly sees India as a source of technology, talent and globally scalable businesses rather than simply a market for BGMI.
The reported approach toward $900 million in cumulative India investments could make Krafton one of the more significant foreign strategic investors in India’s consumer and technology ecosystem. The bigger test will be whether its portfolio can generate successful exits and strategic synergies while India’s startup market moves into a more selective phase. If Krafton can combine its gaming expertise, global distribution network and capital with India’s entrepreneurial and engineering talent, its India strategy could evolve into a long-term platform for building consumer and AI companies with ambitions beyond the domestic market.
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