Krafton Launches $669 Million India Growth Fund with Naver

South Korean gaming giant Krafton is launching a major growth fund for India. The company announced its new “Unicorn Growth Fund” this week. Krafton is partnering with internet group Naver and investor Mirae Asset on the initiative.

The fund aims to deploy up to ₹60 billion, or about $669 million, over four years. According to a spokesperson speaking to TechCrunch, this marks a significant expansion of Krafton’s investment strategy in the world’s largest internet user base. The move underscores India’s growing importance as a key digital market.

Fund Structure and Initial Investments Detailed

The fund will be managed by Mirae Asset Venture India. It is expected to be formally established in January. Operations will begin with an initial corpus of over ₹30 billion ($334.6 million).

Krafton will contribute ₹12.3 billion ($137.2 million) at the first close. Naver’s capital commitment is expected to be broadly comparable to Krafton’s investment. A company spokesperson confirmed typical deals will range from $10 million to $30 million.

Investments will primarily be treated as financial positions. However, engagement levels with portfolio companies may vary. Krafton will assess each opportunity based on its long-term potential.

Extending a Strategic Foothold in the Indian Market

Krafton has already invested more than $200 million in India. Its portfolio includes gaming, content, and fintech companies like Nodwin Gaming and Cashfree. This new fund represents a strategic push beyond its core gaming roots.

The company’s journey in India faced a major hurdle in 2022. New Delhi banned its hit game Battlegrounds Mobile India (BGMI). The title was allowed to return after a review and operational changes by Krafton.

BGMI has seen over 240 million downloads since its launch. Krafton has since committed $150 million to the Indian market. The new fund solidifies its intent to build a deep, lasting presence across India’s tech ecosystem.

The launch of the Krafton India fund signals robust international confidence in the country’s startup landscape. This substantial capital infusion aims to accelerate growth for a new wave of Indian technology companies.

A quick knowledge drop for you:

What is the goal of Krafton’s new India fund?

The Unicorn Growth Fund aims to invest up to $669 million in Indian startups over four years. Its primary goal is to fuel the growth of technology companies. The fund is a partnership between Krafton, Naver, and Mirae Asset.

How much is Krafton investing initially?

Krafton is committing approximately $137.2 million at the fund’s first close. Partner Naver is expected to invest a comparable amount. The total initial fund size will be over $334 million.

What types of companies will the fund invest in?

While Krafton’s past bets focused on gaming and content, this fund will look at a wider set of tech startups. Typical investment sizes will range from $10 to $30 million. The approach will be more financial, though strategic engagement is possible.

Why is Krafton so focused on the Indian market?

India is the world’s largest internet user base and a fast-growing digital economy. Krafton sees long-term potential there, especially after the success of its game BGMI. Investing helps the company build a broader presence beyond just gaming.

Has Krafton invested in India before?

Yes, Krafton has invested over $200 million in India to date. Its portfolio includes companies like Nodwin Gaming, Loco, and fintech firm Cashfree. The company also acquired gaming studio Nautilus Mobile earlier this year.