Krafton Doubles Down on India with Another $250M Bet
Krafton, the South Korean gaming giant behind PUBG and Battlegrounds Mobile India (BGMI), has announced a fresh Krafton India investment of $250 million. This new commitment, revealed on Friday, will be deployed over the next three to four years as the company pushes far beyond gaming into artificial intelligence, robotics, and deep tech.
This latest Krafton India investment brings the company’s total planned investment in the country to over $500 million. That figure includes the more than $250 million Krafton has already invested since 2021. The new funds are separate from a $670 million India-focused growth fund Krafton unveiled with South Korean internet conglomerate Naver and investor Mirae Asset in December 2025. Krafton confirmed to TechCrunch that this new $250 million pledge is distinct from that growth fund.
Why India Is Critical for Krafton
India has become a strategic cornerstone for Krafton. The publisher gains access to the world’s most populous nation, home to over a billion internet subscribers and more than 700 million smartphone users. Krafton initially built its India business around gaming, led by BGMI, a revamped and localized version of PUBG that has surpassed 260 million downloads.
In recent years, the company has also used investments in Indian startups to broaden its business beyond games. This latest Krafton India investment signals a clear intent to diversify its portfolio across multiple high-growth technology sectors. The move aligns with Krafton’s vision of becoming a major player in the country’s broader digital economy, not just its gaming landscape.
BGMI’s Journey and Regulatory Challenges
Krafton’s run in India has not always been smooth. The Indian government banned PUBG Mobile in 2020 amid escalating tensions between New Delhi and Beijing. Hundreds of Chinese-linked apps were also removed at that time. Krafton stepped in after the ban and introduced BGMI in 2021. The company dropped Tencent Games as the game’s publisher in India and moved its India servers to Microsoft’s Azure cloud. These changes were critical as Krafton worked to address New Delhi’s concerns over data security and sovereignty.
However, in 2022, BGMI was itself banned in India. The federal government later allowed it to return on a three-month trial basis the following year. Despite these early setbacks, Krafton has continued to build around the franchise since its return. The company plans to launch BGMI Lite in India by the end of 2026, aiming to capture even more of the market with a lighter, more accessible version of the game.
Krafton’s Growing Portfolio of Indian Startups
Despite regulatory hurdles, Krafton continued to invest in India and has so far backed about 18 companies. These include four to five gaming studios. Its notable investments include Nodwin Gaming, Loco, Pratilipi, Kuku FM, and One Impression. Each of these startups represents a different facet of India’s digital and creative economy, from esports and live streaming to vernacular content and influencer marketing.
The new Krafton India investment commitment follows a meeting between Krafton chairman Chang Byung-gyu and Indian Prime Minister Narendra Modi in New Delhi earlier on Friday. The two discussed opportunities for India and South Korea to work more closely across gaming, technology, and other emerging sectors. This high-level engagement underscores the strategic importance Krafton places on its Indian operations.
Expanding Local Operations and Talent Development
Krafton has also been actively building out its local operations. Last year, it acquired Pune-based Nautilus Mobile, the studio behind the popular Real Cricket franchise. This acquisition gave Krafton a strong foothold in India’s mobile sports gaming segment, which has a massive and dedicated fan base.
The company also recently launched KIGI Academy, an industry-academia program aimed at training talent in game development and digital creation. This initiative reflects Krafton’s long-term commitment to nurturing local talent and building a sustainable ecosystem for game development in India. By investing in education and skills development, Krafton is positioning itself as a key contributor to India’s digital future.
Beyond Gaming: AI, Robotics, and Deep Tech
What makes this Krafton India investment particularly noteworthy is its focus beyond gaming. The company is actively exploring opportunities in artificial intelligence, robotics, and deep tech. This diversification strategy reflects a broader trend among gaming companies leveraging their technology expertise to enter adjacent high-growth sectors.
For India, this means more than just capital infusion. It brings global expertise in AI and robotics to the local ecosystem. Krafton’s deep-tech ambitions could help accelerate India’s innovation capabilities in these critical areas. The company’s willingness to invest in frontier technologies demonstrates its confidence in India’s potential as a hub for advanced research and development.
The Strategic Importance of the Indian Market
India’s digital economy is growing at an unprecedented pace. With over 700 million smartphone users and rapidly improving internet infrastructure, the country offers immense opportunities for companies like Krafton. The Krafton India investment strategy recognizes that India is not just a market for consumption but also a hub for innovation and talent.
Krafton’s commitment to India goes beyond financial investments. The company has shown resilience in navigating regulatory challenges, adapting its products to local requirements, and building meaningful partnerships. This approach has earned Krafton a strong position in the Indian gaming market, with BGMI consistently ranking among the most downloaded and played mobile games in the country.
What This Means for India’s Tech Ecosystem
This substantial Krafton India investment is a strong vote of confidence in the country’s startup and tech landscape. While the initial focus was on gaming, the pivot toward AI, robotics, and deep tech is significant. It signals that global investors see India not just as a large consumer market, but as a hub for cutting-edge innovation.
For Indian startups, this means more capital and potential partnerships with a global leader. For gamers, it promises more localized content and potentially better gaming experiences. For the broader tech community, it highlights the growing convergence between entertainment, AI, and deep technology in one of the world’s fastest-growing digital markets.
The Road Ahead for Krafton in India
Krafton’s journey in India has been a rollercoaster of bans, comebacks, and strategic pivots. With this new Krafton India investment, the company is clearly signaling that it is here for the long haul. The focus is no longer just on surviving regulatory hurdles but on thriving as a diversified technology investor and operator.
As BGMI continues to dominate the mobile gaming charts and new initiatives like BGMI Lite prepare for launch, Krafton is building a comprehensive ecosystem. The combination of gaming revenue, strategic startup investments, and deep-tech exploration could make Krafton one of the most influential foreign investors in India’s digital economy over the next decade.
Krafton’s decision to inject another $250 million into India marks a significant milestone in the company’s global expansion strategy. This Krafton India investment reflects the company’s confidence in India’s long-term growth potential and its commitment to becoming an integral part of the country’s technology ecosystem. From gaming and esports to AI, robotics, and deep tech, Krafton is positioning itself at the forefront of India’s digital transformation.
With a proven track record of navigating challenges, building strong local partnerships, and investing in talent development, Krafton is well-poised to capitalize on the enormous opportunities India offers. As the company continues to expand its footprint, the Indian tech ecosystem stands to benefit from the capital, expertise, and global connections that Krafton brings to the table.
