South Korean gaming company Krafton has revealed its plans to invest an additional $150 million in BGMI(BattleGrounds Mobile India) to propel India’s gaming industry within the next 2-3 years. This announcement comes as a welcome development for the local gaming ecosystem, coming shortly after the company gained authorization to test its widely popular battle royale game in the South Asian market. This permission was granted despite the game being banned twice previously.
Krafton’s recent decision follows a series of investments totalling approximately $140 million over the past three years in various Indian startups and the local gaming landscape. Among its Indian investments are ventures like Nodwin Gaming, Loco, Pratilipi, and Kuku FM. The company has stated that the newly pledged $150 million will be directed towards funding startups within the gaming and entertainment sectors. Krafton also expressed its satisfaction with the performance of its existing portfolio startups in India, highlighting that many have witnessed significant revenue growth and secured subsequent funding rounds.
Krafton’s commitment to this substantial investment underscores its enduring commitment to India’s burgeoning startup ecosystem. The company acknowledges the diverse range of factors that can influence a company’s performance, including market conditions and consumer sentiment. Despite these variables, Krafton remains dedicated to providing ongoing support to the startups it has backed.
The announcement of this fresh $150 million investment coincides with Krafton’s BGMI mobile game receiving approval to operate in India, nearly a year after it was initially banned. This mobile title is a localized and revamped version of PUBG, which was previously banned due to national security concerns. Krafton’s strategic measures, such as severing ties with Tencent and transitioning to Microsoft’s Azure servers in India, have demonstrated its commitment to addressing New Delhi’s apprehensions.
This development is significant for India’s gaming ecosystem, particularly due to Krafton’s stature in the industry. Its games, including PUBG and the revamped BGMI, have maintained a strong presence. BGMI, in particular, has garnered approximately 30 million monthly active users within a mere three months following its relaunch. This surge in popularity has translated into revenue generation, underlining the game’s commercial success.
Krafton emphasized that the timing of its investment pledge and the ongoing BGMI trial are independent of each other. The company affirms its unwavering commitment to supporting India’s local ecosystem, regardless of external conditions. Krafton has already invested around $140 million into India’s startup scene since 2021 and intends to continue doing so, recognizing India’s potential as a pivotal growth engine for the company on a global scale.
Sean Hyunil Sohn, CEO of Krafton India, expressed optimism about the impact of Indian IPs and content in leaving a lasting global influence. Krafton is dedicated to attaining new milestones that contribute to India’s emergence as a dominant force in the global gaming arena.
