Krafton Commits Another $250 Million to India, Expanding Beyond Gaming into AI, Robotics, and Deep Tech

Krafton, the South Korean gaming titan renowned globally for its blockbuster titles like PUBG: Battlegrounds and its localized Indian counterpart, Battlegrounds Mobile India (BGMI), has announced a substantial new investment commitment for India. The company plans to inject an additional $250 million into the Indian market over the next three to four years, signaling a strategic and ambitious pivot beyond its traditional gaming strongholds into cutting-edge technological domains such as artificial intelligence (AI), robotics, and deep tech. This significant financial pledge underscores Krafton’s long-term vision for India, positioning the nation not just as a critical market for its gaming portfolio but also as a burgeoning hub for advanced technological innovation.

The new commitment, officially announced on Friday, will elevate Krafton’s total direct investment in India to more than $500 million. This cumulative figure includes over $250 million that the company had already deployed in the country since 2021, demonstrating a consistent and growing financial engagement with the Indian ecosystem. This direct investment strategy operates independently of other financial ventures. Notably, the funds committed are distinct from Krafton’s involvement in a larger, India-focused growth fund valued at $670 million. This separate fund was unveiled in December 2025 in collaboration with South Korean internet conglomerate Naver and prominent investor Mirae Asset. At the initial close of this growth fund, Krafton had committed approximately $137 million, highlighting a multi-faceted approach to capitalize on India’s burgeoning startup and technology landscape. The company explicitly confirmed to TechCrunch that the newly pledged $250 million is a direct capital infusion by Krafton and is entirely separate from its contributions to the aforementioned growth fund, underscoring its independent strategic priorities in the region.

India has emerged as an undeniably pivotal market for Krafton, offering the gaming publisher unparalleled access to the world’s most populous country. This demographic advantage is compounded by a rapidly expanding digital infrastructure, evidenced by more than a billion internet subscribers and over 700 million smartphone users. This vast and digitally connected populace represents an enormous consumer base, making India a strategically indispensable geography for global technology and entertainment companies. The country’s young demographic profile, coupled with increasing disposable incomes and a strong affinity for digital content, creates an exceptionally fertile ground for the growth of online gaming, mobile applications, and advanced technological solutions, aligning perfectly with Krafton’s diversified investment strategy.

Krafton initially cemented its presence and business foundation in India through its highly successful gaming offerings. Its flagship title, Battlegrounds Mobile India (BGMI), a meticulously revamped and localized iteration of the globally acclaimed PUBG: Battlegrounds, has achieved phenomenal success, surpassing 260 million downloads. BGMI’s popularity not only solidified Krafton’s position in the Indian gaming market but also served as a crucial springboard for its broader strategic ambitions. In recent years, leveraging this strong gaming foothold, the company has judiciously channeled investments into a diverse array of Indian startups, systematically broadening its business footprint beyond core gaming operations. This expansion into varied sectors reflects a deliberate strategy to tap into India’s multifaceted digital economy and diversify revenue streams.

However, Krafton’s journey in the Indian market has not been without significant challenges. The company faced a major setback in 2020 when the Indian government imposed a ban on PUBG Mobile. This action was part of a broader regulatory crackdown that saw hundreds of Chinese-linked applications prohibited amidst escalating geopolitical tensions between New Delhi and Beijing. The ban was primarily driven by concerns related to data security, national sovereignty, and potential misuse of user information, highlighting the complex regulatory environment for foreign tech companies operating in India. The abrupt cessation of PUBG Mobile, a game with immense cultural penetration, left a void in the Indian mobile gaming landscape and presented a formidable hurdle for Krafton.

In response to the ban and in a testament to its commitment to the Indian market, Krafton took decisive action. The company strategically re-entered the market in 2021 with the launch of Battlegrounds Mobile India (BGMI). This relaunch involved critical structural changes designed to address the Indian government’s concerns. Most notably, Krafton severed its publishing ties with Tencent Games for the Indian market and migrated its India-specific server infrastructure to Microsoft’s Azure cloud platform. These strategic adjustments underscored Krafton’s dedication to ensuring data localization and compliance with India’s evolving regulatory framework, signaling a clear intent to operate independently of Chinese publishers and prioritize the data security of Indian users.

Despite these proactive measures, BGMI faced another temporary setback in 2022 when it was itself banned in India. The reasons cited for this subsequent prohibition again revolved around concerns regarding data security and the potential for the app to communicate with servers in banned regions, indicating continued governmental scrutiny over foreign applications. The ban had a significant impact on Krafton’s operations and the loyal player base. Nevertheless, the federal government demonstrated flexibility, allowing BGMI to make a conditional return on a three-month trial basis the following year, in 2023. This conditional re-entry underscored the ongoing dialogue between Krafton and Indian authorities and the company’s persistent efforts to meet regulatory requirements. Since its return, Krafton has actively continued to build upon the BGMI franchise and has ambitious plans to launch a lighter version, BGMI Lite, in India by the end of 2026, aiming to cater to a broader spectrum of devices and expand its market reach.

Remarkably, despite these significant regulatory hurdles and early setbacks, Krafton maintained its unwavering commitment to investing in India. This resilience has translated into backing a diverse portfolio of approximately 18 companies within the country, including four to five specialized gaming studios, as confirmed by the company to TechCrunch. These strategic investments span various sectors, reflecting Krafton’s broader vision beyond just gaming. Notable investments include Nodwin Gaming, a leading esports company; Loco, a popular live-streaming platform; Pratilipi and Kuku FM, both prominent players in the digital content and audio entertainment space; and One Impression, an influencer marketing platform, among others. These investments illustrate Krafton’s strategy to cultivate a robust ecosystem around digital entertainment, content creation, and technology in India.

The latest $250 million investment commitment was announced shortly after a high-profile meeting between Krafton chairman Chang Byung-gyu and Indian Prime Minister Narendra Modi in New Delhi earlier on Friday. This direct engagement at the highest governmental level underscores the strategic importance of Krafton’s operations and investments in India. During their discussions, both leaders explored avenues for enhanced collaboration between India and South Korea across a spectrum of dynamic sectors, including gaming, advanced technology, and other emerging industries. Krafton indicated that these discussions highlighted a shared vision for fostering innovation and economic growth through bilateral cooperation, reinforcing the deep strategic ties between the two nations.

In parallel with its investment strategy, Krafton has also been assiduously building out its local operational capabilities and fostering indigenous talent. Last year, in a significant move to deepen its roots in the Indian gaming ecosystem, Krafton acquired Pune-based Nautilus Mobile. This studio is widely recognized as the developer behind the highly popular "Real Cricket" franchise, a game particularly resonant with Indian audiences due to the country’s fervent passion for cricket. Furthermore, demonstrating a commitment to talent development, Krafton recently launched the KIGI Academy. This innovative industry-academia program is specifically designed to train and nurture local talent in crucial areas such as game development and broader digital creation, aiming to bridge the skill gap and contribute to the growth of India’s creative and technological workforce. These initiatives collectively reflect Krafton’s comprehensive strategy for long-term, sustainable growth and integration within India’s vibrant digital landscape.