In a significant show of confidence in the Indian digital ecosystem, South Korean esports powerhouse Krafton Inc., the creator of the immensely popular Battlegrounds Mobile India (BGMI), has announced a major investment push. The company plans to inject approximately $200 million (around Rs 1,800 crore) into the Indian market over the next three to four years. This bold move comes even as the domestic online real-money gaming sector faces operational challenges following recent government actions.
Strategic Investments and Expansion Plans
Krafton's India Managing Director, Sean Hyunil Sohn, revealed the company's roadmap in an interview. The substantial capital will be directed towards multiple strategic avenues. These include the acquisition of local companies in the digital and technology space, further expansion of Krafton's business activities in the country, and the crucial development of global games from its Bangalore development center.
This new investment commitment continues the momentum built over the past few years, where Krafton has already deployed $200 million into the Indian startup landscape. Their portfolio includes investments in about 17 companies and funds, such as the audio content platform Kuku FM, hyperlocal community app Shuru, payment gateway firm Cashfree Payments, and game developer Nautilus Mobile.
Focus Areas: Gaming, Fintech, and Digital Media
Sohn outlined that the company intends to maintain a steady investment pace, targeting around $50 million annually over the stated period. He noted that the Indian market has matured considerably since Krafton began its investment journey in 2020. "Many companies are sizable and even using AI to scale up," he observed. The primary sectors of interest for Krafton's future investments are gaming, fintech and payments, and digital media.
A key pillar of their strategy is leveraging Indian talent for global game production. "It's tough to develop games, and we will be hiring developers. We will also engage with external/outsourcing partners for this," Sohn stated, highlighting the planned scaling of their Bangalore operations.
Esports Growth Amid Regulatory Clarity
When questioned about the potential impact of the government's ban on online real-money gaming (RMG) platforms, Sohn expressed that Krafton's core operations remain insulated. He emphasized that the company's focus on esports and skill-based gaming positions it differently. Furthermore, he views the government's move towards providing regulatory clarity as a positive development for the organized esports industry.
"From the regulatory point of view, it will be more structured and transparent. And since the government has said it will promote esports, it is overall positive for us. We see this as a change for good," Sohn commented. Krafton not only publishes online games but also actively runs and manages large-scale on-ground esports championships in India, which attract participants from across the country and internationally.
This renewed investment pledge signals Krafton's long-term commitment to India, betting on the country's growing developer talent, vibrant digital economy, and the rising mainstream acceptance of competitive esports as a legitimate sporting and entertainment avenue.
