Krafton, the South Korean developer best known for PUBG and Battlegrounds Mobile India (BGMI), disclosed on Friday that it will invest an additional $250 million in India over the next three to four years. The new pledge brings the company’s total planned outlay in the country to more than $500 million, on top of the roughly $250 million it has already deployed since 2021.
Background to Krafton’s India strategy
India represents a strategic market for Krafton because of its massive internet user base – more than a billion subscribers – and a smartphone penetration exceeding 700 million devices. The firm’s Indian operations originally centred on gaming, with BGMI – a localized version of PUBG – achieving more than 260 million downloads since its launch. The success of BGMI helped Krafton gain a foothold in the world’s most populous nation.
In December 2025, Krafton announced a $670 million India‑focused growth fund in partnership with South Korean internet group Naver and investor Mirae Asset. At the fund’s first close, Krafton committed approximately $137 million. The new $250 million commitment is distinct from that growth‑fund initiative.
Regulatory hurdles and market re‑entry
Krafton’s journey in India has faced regulatory setbacks. In 2020, the Indian government banned PUBG Mobile along with hundreds of apps linked to Chinese companies amid heightened New Delhi‑Beijing tensions. In response, Krafton introduced BGMI in 2021, dropping Tencent Games as the publisher and moving its Indian servers to Microsoft’s Azure cloud to address security concerns raised by the authorities.
Despite these adjustments, BGMI was banned again in 2022. The ban was lifted later that year on a three‑month trial basis, allowing the game to resume operations. Krafton has continued to develop the franchise and plans to launch a lighter version, BGMI Lite, by the end of 2026.
Broader investment portfolio and local initiatives
Beyond its flagship game, Krafton has diversified its Indian investments, backing roughly 18 companies to date, including four to five dedicated gaming studios. Notable portfolio companies include Nodwin Gaming, Loco, Pratilipi, Kuku FM and One Impression.
The firm also expanded its on‑ground presence. In the previous year, Krafton acquired Nautilus Mobile, a Pune‑based studio known for the Real Cricket franchise. More recently, it launched the KIGI Academy, an industry‑academia programme designed to train talent in game development and digital creation.
The latest $250 million commitment follows a meeting between Krafton chairman Chang Byung‑gyu and Indian Prime Minister Narendra Modi in New Delhi. According to Krafton, the two leaders discussed opportunities for deeper collaboration between India and South Korea across gaming, technology and emerging sectors such as artificial intelligence and robotics.
By earmarking the new funds for AI, robotics and other deep‑technology fields, Krafton signals a strategic shift from a pure‑play gaming publisher to a broader technology investor in India. The company’s stated intention is to leverage its existing ecosystem – including its gaming audience, startup investments and talent‑development programmes – to explore synergies in emerging tech domains.
Analysts note that the combined $500 million-plus commitment underscores Krafton’s confidence in India’s long‑term growth potential, despite the regulatory turbulence the firm experienced in the early 2020s. The partnership with Naver and Mirae Asset, together with the standalone $250 million pledge, suggests a multi‑pronged approach: direct corporate investment, participation in a larger growth fund, and targeted spending on non‑gaming technologies.
While the exact allocation of the new capital remains undisclosed, Krafton has indicated that it will support both internal development – such as the upcoming BGMI Lite launch – and external collaborations with Indian startups working on AI, robotics and related deep‑tech solutions. The move aligns with broader trends of global gaming companies expanding into adjacent technology sectors to diversify revenue streams and capture new market opportunities.
Overall, Krafton’s expanded financial commitment reflects a deepening of its India strategy, moving beyond a single‑game focus to a more diversified technology portfolio. The company’s continued investment in local talent, infrastructure and startups positions it to participate in India’s evolving digital economy, which remains one of the fastest‑growing markets for both gaming and emerging technologies.
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