Krafton Leads $666 Million Asia Investment Fund with Focus on Indian Tech Startups

PUBG maker Krafton is leading a new $666 million investment fund in Asia alongside South Korean partners Naver and Mirae Asset, with a primary focus on India's technology startup ecosystem beyond gaming.

The "Unicorn Growth Fund" represents the first major collaboration between these three South Korean industry leaders in India, where Krafton has already established a significant presence through its mobile gaming hit Battlegrounds Mobile India (BGMI).

According to the company, the fund will be managed by Mirae Asset Venture India and expects to begin operations in January 2026 with an initial pool of over $333 million before eventually scaling to its full target amount.

At the first close, Krafton will contribute ₹12.3 billion (approximately $137 million), while Naver's capital commitment is expected to be broadly comparable to Krafton's investment, according to a company spokesperson.

This investment vehicle will target various tech sectors, including artificial intelligence, fintech, content, logistics, consumer goods, sports, media, and healthcare.

Krafton India CEO Sean (Hyunil) Sohn stated, "Our participation in this fund aims to discover sustainable businesses in India that create social and economic value in addition to gaming. By exploring investment opportunities in various sectors such as consumer goods, sports, media and healthcare, we plan to position ourselves as a brand trusted by its people."

Choi In-hyuk, President of Naver Tech Business, added, "Leveraging Naver's platform, content, and AI capabilities, we aim to jointly support the discovery of innovative Indian companies and contribute to the expansion of the local technology ecosystem."

Krafton has already invested more than $200 million in India to date, backing companies across gaming, content, and fintech spaces. Recent investments include fintech platform Cashfree and venture fund IMM Investment, alongside earlier bets on gaming and content platforms such as Nodwin Gaming, Loco, Pratilipi, and Kuku FM.

The company also launched a gaming incubator (KIGI) in India in 2023 and acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million earlier this year.

However, Krafton's journey in India hasn't been entirely smooth sailing. The company's flagship title BGMI, which currently boasts over 240 million downloads, has faced regulatory challenges in recent years. New Delhi banned the game in 2022 over data security concerns before allowing its return in 2023 following a three-month trial approval. The title was launched in 2021 as a revamped, localized version of PUBG Mobile, another popular game that was banned by the Indian government in mid-2020 citing concerns about data sharing with China.

Since then, Krafton has made several operational changes including cutting ties with Tencent as its publisher and migrating its India servers to Microsoft's Azure cloud to address regulatory concerns. Following BGMI's return, the company announced a $150 million investment commitment in the country, demonstrating its long-term confidence in the Indian market despite the gaming sector's regulatory volatility.

With this new fund, Krafton is clearly looking to extend its India strategy beyond gaming and establish itself as a trusted brand across multiple technology sectors in the world's largest internet user base.