Krafton, the well-known South Korean video game developer that is recognised in the world with game titles as Battlegrounds Mobile India (BGMI), has unveiled an ambitious and significant strategy to further expand its operational and financial investment in the Indian market. The new investment plan has been announced by the company, worth approximately $200 million (₹1,800 crore) and will be implemented within a period of three to four years. The strategic investment of this additional capital will be expected to be used in various core areas of digital development that India requires, such as acquisitions of emerging digital and technology startups in India. The aggressive expansion of the local business of Krafton, and the visionary idea of producing its own gaming titles that will be used in the global market, all directly out of its centre in Bengaluru.
Objective and focus of investment
The investment of 200 million dollars (1,800 crore) is not just a large financial commitment, but is also a directional plan on how Krafton will be in India. The capital will be invested in three main avenues, all of which will strengthen the ecosystem and technological presence of the company in the region.
A large part of the funding will be dedicated to proactive acquisition of good Indian digital and tech startups, which will enable Krafton to speed up the incorporation of local innovation and talent into its broader portfolio. The investment will be aimed at enabling the company to expand its current local operations so that when it arrives at its plans, the infrastructure and the number of staff members are sufficient to accommodate its plans.
Another focus of the investment is the establishment of international gambling Intellectual Properties (IPs). Krafton is determined to make its Bengaluru office the hub of producing high-quality gaming titles capable of competing at a global level.
With the purpose of helping to achieve this goal, the company has already ensured that it will recruit additional developers in the region and that it will also begin to actively engage in collaboration with other external players in the Indian ecosystem. This local development and external partnership interest is likely to change its local presence from a market entry point but a full-scale global development centre.
Significant investment and a rapidly maturing market
The new commitment of $200 million is not the initial foray of the company into the Indian digital ecosystem; on the contrary, it is a continuation and a speed-up of the already massive track record of investment. Ahead of this announcement, Krafton had already invested heavily in India to the value of $200 million. This past investment has been diversified to include seventeen companies and funds, indicating that this is a wide and diversified market approach.
The current portfolio of its Indian investments includes Krafton-owned popular audio platform, Kuku FM, hyperlocal app, Shuru, financial technology company, Cashfree Payments, as well as mobile game developer Nautilus Mobile.
The Managing Director, Sohn, expressed that the company would continue with a steady investment pace in the future, in particular, investing approximately $50 million annually. This is an intended rate of yearly growth that highlights a calculated and long-term faith in the financial sustainability and innovative potential of the Indian digital start-up environment.
As per the analysis presented by Sean Hyunil Sohn, the Indian market has undergone a major maturation since 2020. The latter maturity is supported with references to a number of things, such as the rapid pace of scaling by local businesses and a significant rise in the use of Artificial Intelligence (AI) to innovate. These dynamics have made India a centre of Krafton’s new level of growth.
The combination of a fast-growing market, an established track record of successful investments, and an unambiguous legal perspective on non-real-money gaming has assured Krafton to invest such an amount. Through the local developer talent and technological development, especially in artificial intelligence-based innovation, Krafton is placing India not only as a consumer market, but also as a strategic point of global gaming IPs globally, so that in the next four years and beyond, the region can be at the centre of the company’s creative and commercial ambition.
Conclusion
The commitment of about $200 million (₹1,800 crore) in four years by Krafton is a conclusive report on the strategic value of the Indian market. Through its acquisitions, expansion in Bengaluru and development of global gaming brands, the South Korean company is embarking on a strategic decision to tap into the increasing technological maturity and talent pool in India. The ability of the company to face the recent regulatory changes and the positive outlook on the structural organisation of the esports industry in the long-term perspective is a strong indication of the belief in the sustainable Indian economic and digital narrative of growth. The huge investment will continue to strengthen the local startups and make India a major developer and exporter of international gaming intellectual property.
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