Krafton, the gaming giant behind hit titles like PUBG and BGMI, has made a surprising move into the fintech space by leading a $53 million investment in Indian payments startup Cashfree.
This investment, alongside existing backer Apis Growth Fund, values the Bengaluru-based company at $700 million, according to Forbes. While it may seem unusual for a gaming company to back a payments firm, Krafton sees strategic potential in this partnership.
Sean Hyunil Sohn, CEO of Krafton India, highlighted the company’s vision, stating that India’s fintech sector is growing rapidly and that Cashfree’s dominance in the country could be expanded globally.
For Krafton, this investment is part of a broader strategy in India, where it has already invested nearly $200 million across various startups. The gaming firm aims to build an ecosystem that supports digital transactions, benefiting both its own platforms and its portfolio companies.
Cashfree, which processes over $80 billion annually, provides a range of payment solutions, including automated payouts, payment gateway services, and fraud prevention tools. With customers like Swiggy, Zepto, and Bajaj Finance, the startup has established itself as a key player in India’s payments industry. While Krafton and Cashfree do not currently process transactions for games like BGMI, discussions are underway, and a collaboration could be on the horizon.
Beyond India, Cashfree is expanding into international markets, particularly in the Middle East and North Africa (MENA). The company is targeting six key markets, including the UAE, Saudi Arabia, and Egypt, where digital payment systems are evolving. Given Krafton’s ambitions to strengthen its foothold in emerging markets, this investment could open new doors for the gaming company as well.
Krafton’s move reflects a broader trend of gaming companies diversifying beyond traditional game development. By investing in fintech, Krafton is not only strengthening its business infrastructure but also positioning itself at the forefront of the evolving digital economy.
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