South Korean gaming giant Krafton, the creator of global hits like PUBG and Battlegrounds Mobile India (BGMI), is launching a $669.3 million (₹60 billion) growth investment fund targeting India’s tech ecosystem over the next four years to solidify its market dominance in the world’s largest internet user base.
Structuring the New Unicorn Growth Fund
Named the Unicorn Growth Fund, the venture is a strategic collaboration between Krafton, South Korean internet conglomerate Naver, and investment powerhouse Mirae Asset. Managed directly by Mirae Asset Venture India, the fund is scheduled to launch in January with an initial capital pool exceeding ₹30 billion (around $334.6 million).
Krafton confirmed to TechCrunch that it will inject ₹12.3 billion (approximately $137.2 million) into the vehicle at first close. Naver’s capital commitment will be “broadly comparable” to Krafton’s $137 million contribution. Designed without rigid country-allocation thresholds, the fund targets deal sizes ranging from $10 million to $30 million.
Krafton noted that investments made through this fund will primarily serve as financial positions rather than strict strategic bets. However, operational engagement with portfolio companies will be adapted dynamically based on each startup’s long-term commercial potential.
Krafton’s Aggressive Expansion Beyond Gaming
This latest financial commitment builds upon Krafton’s existing presence in India, where the publisher has already deployed more than $200 million into local gaming, digital media, and financial technology ventures.
Portfolio Strategy and Key Indian Acquisitions
To date, Krafton’s direct investments in India include fintech startup Cashfree, venture fund IMM Investment, and high-profile content and gaming platforms such as Nodwin Gaming, Loco, Pratilipi, and Kuku FM. The company also launched a specialized gaming incubator in 2023 and acquired a controlling stake in Indian game developer Nautilus Mobile for $14 million earlier this year.
Overcoming Regulatory Turmoil in the Indian Market
Krafton’s long-term expansion in India follows a turbulent history with local regulators. In mid-2020, New Delhi banned PUBG Mobile over national security concerns. Krafton responded in 2021 by releasing BGMI, a localized version designed specifically for the Indian market.
Despite this effort, Indian authorities banned BGMI in 2022 before granting a conditional three-month trial approval in 2023. Following its reinstatement, Krafton pledged an additional $150 million investment in the country.
To achieve full regulatory compliance, Krafton completely overhauled its regional operations. The company cut publishing ties with Chinese tech giant Tencent and relocated its Indian data servers to Microsoft’s Azure cloud infrastructure. Driven by these compliance shifts, BGMI has successfully rebuilt its user base, recently surpassing 240 million downloads.
Through the launch of the Unicorn Growth Fund, Krafton is positioning itself to capture value across the broader Indian technology landscape as Asia’s fastest-growing digital economy continues to mature.
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