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Krafton hikes India bet with new $670M fund
Krafton, a South Korean gaming company, is launching the $670M Unicorn Growth Fund to invest in Indian startups, aiming for a broader tech focus beyond gaming. Managed by Mirae Asset, the fund will support early-stage companies and channel investments primarily as financial positions. This initiative reflects Krafton's commitment to the Indian market amidst previous setbacks such as the temporary ban on BGMI, its flagship title.
Key points
- Krafton is launching the Unicorn Growth Fund in collaboration with Naver and Mirae Asset, focusing on Indian startups.
- The fund will deploy up to ₹60 billion (around $670M) over four years, with initial investments ranging from $10 million to $30 million.
- Krafton will invest ₹12.3 billion (approximately $137 million) at the first close, with Naver's contribution expected to match this amount.
- Krafton has invested over $200 million in India previously, focusing on gaming, fintech, and content sectors.
- The company faced setbacks with the ban of BGMI in 2022, which was reversed in 2023 after compliance efforts.
Why it matters
- Krafton's expansion aligns with IT trends emphasizing increased investment in tech startups in developing markets.
- The fund's establishment reflects a growing trend of foreign direct investment in India's technology sector, particularly after previous challenges.
- As of 2023, the Indian gaming market and overall tech ecosystem are experiencing rapid growth, making it an attractive destination for investment.
Krafton's Unicorn Growth Fund signifies a strategic move to solidify its presence in India by diversifying investments, aiming to capitalize on the booming tech landscape while navigating regulatory challenges.