Krafton Doubles Down on India with ₹6,000 Crore Fund: 10 Startups to Get Backing in 2026
When a company has a hit as massive as Battlegrounds Mobile India (BGMI)—with over 270 million downloads and 15–20% annual revenue growth—the temptation is to ride that wave indefinitely . But Krafton, the South Korean gaming giant behind the title, is charting a different course.
The company is doubling down on India not just as a market for its games, but as a strategic hub for technology investment. In late 2025, Krafton announced the launch of the Unicorn Growth Investment Fund, a ₹6,000 crore vehicle created in partnership with Korean internet giant Naver and financial services major Mirae Asset .
Now, fresh details have emerged. In an interview with The Times of India, Krafton India CEO Sean Sohn confirmed that the company plans to invest in about 10 startups in 2026, with deal activity set to begin this month . The fund will focus on growth-stage ventures and those preparing for public listings, with an average cheque size of $15 million to $30 million .
The Fund Structure: A Three-Pronged Alliance
The Unicorn Growth Fund is structured as a partnership between three Korean powerhouses, each bringing distinct capabilities to the table :
| Partner | Role | Contribution (First Close) |
|---|---|---|
| Krafton | Limited Partner (LP) | ~₹1,230 crore (200 billion won) |
| Naver | Limited Partner (LP) | ~₹1,230 crore (200 billion won) |
| Mirae Asset Venture India | Fund Manager & LP | Slightly smaller amount |
The fund is Korea-domiciled but has India at the centre of its investment strategy . It will begin operations with an initial corpus of ₹3,000 crore in January 2026, with plans to scale up to the full ₹6,000 crore over time .
This is not Krafton’s first rodeo in India. Since 2021, the company has invested over $250 million in Indian startups across interactive entertainment, gaming, esports, and technology . Its existing portfolio includes Cashfree (fintech), Kuku FM (audio content), Pratilipi (storytelling), Nodwin Gaming (esports), and JetSynthesys (digital entertainment) .
The Investment Thesis: AI Integration and Sustainable Growth
What makes this fund particularly notable is Krafton’s emphasis on AI integration and sustainable business models .
According to Sean Sohn, several of Krafton’s existing portfolio companies have already integrated AI into production and development processes, achieving cost efficiencies . However, he also cautioned that there is significant hype around the technology. “Some of our portfolio companies have already adopted AI aggressively in production and development and achieved cost savings. But there is also a lot of hype around its use,” he told TOI .
The fund’s sectoral focus will remain deliberately flexible. While the primary targets are fintech, e-commerce, and digital content (including gaming), Sohn noted that “AI will transform many sectors over the next one to two years, hence we want the focus area of this fund to remain flexible” . This means the fund may eventually invest in sectors not currently on its radar.
Krafton’s approach also stands out for its long-term horizon. Addressing the contrast between his optimism and the broader scepticism around consumer internet and moderated Indian tech funding, Sohn said Krafton’s conviction is based on its experience in emerging markets such as China. “It is still very early for us to make a judgment, but some companies have grown more than 20x or 50x in revenue, while others have shut down. We believe India will deliver strong outcomes in the long term, as long as the right bets are made” .
Beyond Investing: Building a Gaming Ecosystem
Krafton’s India strategy extends far beyond writing cheques. The company is actively building the infrastructure for a homegrown gaming industry.
The Krafton India Gaming Incubator (KIGI)
Since 2023, KIGI has supported 10 studios across the country with financial assistance of up to $150,000 each . The third cohort of the incubator programme is scheduled to begin in April 2026, with plans to incubate between six and 10 teams . Crucially, Krafton does not take upfront equity in the studios it supports. “Only once the team starts generating certain revenue, then they can give back the money to us, or if Krafton does an investment, we can discount the amount,” explained Anuj Sahani, head of KIGI .
The Real Cricket Acquisition
In a landmark move, Krafton acquired a controlling stake in Nautilus Mobile, the studio behind the Real Cricket franchise, for ₹118 crore . The company has since taken over publishing of the title, bringing global expertise in production, technology, and analytics to one of India’s most beloved homegrown cricket games .
New Game Launches
Beyond BGMI and Real Cricket, Krafton plans to launch three to five new titles in 2026 across different genres, including both internally developed games and third-party publishing .
Partnership with DPIIT
In March 2026, Krafton India signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) to collaborate across digital entertainment, online social gaming, esports, interactive media, and AI . The partnership will explore opportunities to organise innovation challenges under the Bharat Startup Grand Challenge and host targeted hackathons .
The Competitive Landscape: Why India, Why Now?
Krafton’s aggressive India push comes at a time when the country’s gaming and startup ecosystems are at an inflection point.
| Metric | Value |
|---|---|
| India’s Gamer Population | Over 500 million |
| BGMI Downloads | 270 million+ |
| Annual Revenue Growth (Krafton India) | 15–20% |
| Krafton’s India Investments (Since 2021) | $250 million+ |
| KIGI Cohorts | 3rd cohort starting April 2026 |
| New Titles Planned for 2026 | 3–5 |
As Sean Sohn told Inven Global, India is “a country that plays a decisive role in shaping Krafton’s product strategy and long-term growth roadmap” . The company’s 2026 business strategy places central emphasis on “depth” rather than “speed” —focusing on nurturing local studios, discovering homegrown IP, and building sustainable partnerships .
What This Means for Indian Startups
Krafton’s expanded India strategy carries several important signals for the country’s startup ecosystem:
1. Global Players See India as a Strategic Hub, Not Just a Market
Krafton is not treating India as a consumer base to be captured; it is treating India as a partner in innovation. The Unicorn Growth Fund is designed to back “soonicorns”—fast-scaling startups nearing unicorn valuation—with the intention of helping them scale globally .
2. AI Integration Is Becoming a Baseline Expectation
Krafton’s emphasis on AI integration reflects a broader trend: investors are increasingly looking for startups that are future-ready with scalable, intelligent solutions. As Sohn noted, AI has already delivered cost efficiencies for portfolio companies .
3. Sustainable Business Models Are the New Priority
Unlike the “growth at all costs” era, Krafton’s fund is focused on growth-stage ventures and those preparing for public listings—companies that have already demonstrated product-market fit and are now ready to scale sustainably .
4. Gaming Is a Strategic Priority
With over 500 million gamers, India is one of the world’s largest gaming markets. Krafton’s investments in local studios, its incubator programme, and its acquisition of Real Cricket signal that homegrown IP has global potential .
The Road Ahead: What to Watch in 2026
As the Unicorn Growth Fund begins operations, several developments bear watching:
- Deal Announcements: The first investments from the fund are expected to be announced in the coming months. The fund will target 10 startups in 2026, with deal activity beginning in April .
- New Game Launches: Krafton’s planned release of three to five new titles will test the company’s ability to diversify beyond BGMI .
- KIGI Cohort 3: The third cohort of the incubator programme will provide additional budgets for performance marketing and enhanced technical support, including codebase reviews .
- Esports Expansion: Krafton plans to expand India’s esports ecosystem through four major BGMI tournaments and the Rising Star programme to identify emerging talent .
The Final Word
Krafton’s ₹6,000 crore Unicorn Growth Fund is more than just a financial commitment. It is a declaration that India is central to the company’s global strategy—not just as a market for its games, but as a partner in building the next generation of technology companies.
By backing 10 startups in 2026 across fintech, e-commerce, and digital content, Krafton is placing a long-term bet on India’s innovation economy. The focus on AI integration and sustainable business models reflects a maturing investment mindset, one that prioritises profitability and resilience over hype-driven growth.
As Sean Sohn put it, “India will deliver strong outcomes in the long term, as long as the right bets are made” . With the Unicorn Growth Fund, Krafton is positioning itself to make exactly those bets.
