Krafton Doubles Down on India: $60 Million Annual Bet on AI and Venture Capital

South Korean gaming giant Krafton, the maker of India’s top-grossing mobile game Battlegrounds Mobile India (BGMI), is dramatically expanding its investment footprint in the country. Moving decisively beyond gaming, the company has committed to investing roughly $50–60 million annually in Indian startups and venture capital funds, with a sharpened focus on artificial intelligence and consumer internet platforms .

This annual allocation is part of a much larger strategic commitment. Krafton’s total investments in India have now reached $900 million, a staggering figure that underscores the country’s importance as a key growth market for the Korean tech firm .

A Strategic Evolution from Gaming to AI

Over the past four to five years, Krafton has invested close to $250 million in India, backing roughly 18 companies—of which only four or five were gaming studios . This historical portfolio includes marquee names like audio platform Kuku FM and payment gateway Cashfree, demonstrating an early and successful pivot towards the broader digital ecosystem .

The strategy is now accelerating. Nihansh Bhat, lead for corporate development at Krafton India, confirmed that the firm is in the final stages of closing investments in two VC funds and three startups, with announcements expected by the end of 2026 . The company aims to invest in five VC funds as a limited partner, alongside about half a dozen direct startup investments .

The Unicorn Growth Fund: A $600 Million Vehicle

A key pillar of this aggressive expansion is the Unicorn Growth Fund (UGF), a massive ₹6,000 crore (approximately $600 million) India-focused fund launched in April 2026 . The fund is a partnership between Krafton, Korean internet conglomerate Naver Corporation, and asset manager Mirae Asset Venture Investments, which manages the fund .

It is one of the largest pools of capital ever raised from Asia for Indian startups . The fund will primarily back growth-stage companies (Series B and C) with cheque sizes ranging from $10 million to $35 million . It will invest across four core themes:

• Technology Platforms: Digital marketplaces and next-generation infrastructure .
• Consumer Tech & Brands: Digital-first brands catering to India’s expanding middle class .
• AI and Enterprise Tech: Generative AI, enterprise software, and developer tools .
• Deep Tech: Semiconductors, space technology, robotics, and advanced materials .

Krafton’s vision is to be a “strategic investor,” providing not just capital but also access to product, AI, and platform expertise from Krafton and Naver, as well as entry points into Korean and broader Asian markets .

Beyond Gaming: Building a Long-Term Presence

Krafton’s massive investment, totaling $900 million, is a strong vote of confidence in India’s startup ecosystem and its growing role in global technology innovation. While BGMI remains its flagship product, accounting for a significant portion of its revenue in India, the company is actively building a diversified portfolio to reduce its dependence on a single hit game .

Krafton’s journey in India has not been without challenges, including the temporary ban on BGMI in 2022 . However, its response has been to double down on the market, making operational changes and deepening its commitment through substantial financial investments. The new fund and annual allocation signal a long-term play to become a cornerstone investor in India’s digital future.