Krafton, a South Korean gaming company known for titles such as PUBG and Battlegrounds Mobile India (BGMI), has announced the launch of a new investment fund targeting the Indian market. The initiative is designed to increase Krafton’s involvement in India, which currently has the world’s largest internet user base and a rapidly growing digital economy.

The fund, named the Unicorn Growth Fund, is a joint venture between Krafton, Naver (a South Korean internet company), and Mirae Asset (an investment firm). The fund plans to invest up to ₹60 billion (approximately $670 million) over the next four years in Indian technology startups. Mirae Asset Venture India will manage the fund, which will begin operations with an initial corpus of over ₹30 billion (about $335 million). Krafton will contribute ₹12.3 billion (approximately $137 million) at the fund’s first close, with Naver expected to match this commitment.

The Unicorn Growth Fund will not impose strict country or sector allocation limits. Instead, it will maintain a flexible investment approach, targeting a broad range of Indian technology sectors. Individual investments are expected to range from $10 million to $30 million, supporting both early-stage and growth-stage companies.

Historically, Krafton’s investments in India have been strategic, focusing on gaming and digital content. However, the company has stated that investments from the new fund will primarily be treated as financial positions. The degree of engagement with portfolio companies will be determined on a case-by-case basis, depending on the opportunity and long-term potential.

Krafton has previously invested over $200 million in India, supporting startups in gaming, content creation, and fintech. Its portfolio includes Cashfree (fintech), IMM Investment (venture fund), and gaming and content platforms such as Nodwin Gaming, Loco, Pratilipi, and Kuku FM. Krafton has also launched a gaming incubator in India and acquired a controlling stake in Nautilus Mobile, an Indian gaming studio, for $14 million.

Krafton has faced regulatory challenges in India. In 2022, the Indian government banned BGMI due to national security concerns. The ban was lifted in 2023 after Krafton implemented operational changes, including ending its publishing relationship with Tencent and migrating Indian servers to Microsoft’s Azure cloud infrastructure. Following the reinstatement of BGMI, Krafton committed an additional $150 million investment in India.

Since its launch in 2021, BGMI has achieved over 240 million downloads. The game was introduced as a localized version of PUBG Mobile, which had previously been banned in India. Krafton’s operational adjustments and compliance with local regulations have been key factors in regaining regulatory approval and user trust.

The launch of the Unicorn Growth Fund represents a strategic shift for Krafton. The company is expanding its focus beyond gaming to support a wider range of technology startups, aligning with India’s rapid digital transformation and growth in sectors such as fintech and content. This approach is consistent with Krafton’s long-term strategy to participate in and influence the development of India’s digital ecosystem.

By allocating significant capital to Indian startups, Krafton aims to achieve financial returns and establish itself as a major contributor to the evolution of India’s digital landscape.