Krafton, the South Korean gaming company behind PUBG and Battlegrounds Mobile India, announced Friday it will commit another $250 million to India over the next three to four years as it expands beyond gaming into artificial intelligence, robotics, and deep tech. The fresh capital will bring Krafton's total planned investment in India to over $500 million, including more than $250 million the company has already deployed in the country since 2021. The new pledge is separate from a $670 million India-focused growth fund Krafton unveiled with South Korean internet giant Naver and investor Mirae Asset in December 2025, where Krafton said it would contribute roughly $137 million at the fund's first close.
India has emerged as a critical market for Krafton, offering access to the world's most populous nation with more than one billion internet subscribers and over 700 million smartphone users, according to the company. Krafton initially focused its India operations around gaming, anchored by BGMI—a localized version of PUBG that has topped 260 million downloads. In recent years, the publisher has used investments in Indian startups to diversify its business beyond games, backing approximately 18 companies including four to five gaming studios. Its portfolio includes Nodwin Gaming, Loco, Pratilipi, Kuku FM, and One Impression. Last year, Krafton acquired Pune-based Nautilus Mobile, the studio behind the Real Cricket franchise, and recently launched KIGI Academy, a training program aimed at developing talent in game development and digital creation.
Krafton's path in India hasn't been without obstacles. The Indian government banned PUBG Mobile in 2020 alongside hundreds of Chinese-linked apps as tensions between New Delhi and Beijing intensified. Krafton responded by introducing BGMI in 2021, dropping Tencent Games as the publisher in India and shifting its India servers to Microsoft's Azure cloud to address New Delhi's concerns. However, BGMI itself was banned in 2022 before the federal government permitted its return on a three-month trial basis the following year. Krafton has continued to build around the franchise since its comeback and plans to launch BGMI Lite in India by the end of 2026.
The investment announcement followed a meeting Friday between Krafton chairman Chang Byung-gyu and Indian Prime Minister Narendra Modi in New Delhi. The two discussed opportunities for India and South Korea to collaborate more closely across gaming, technology, and other emerging sectors, Krafton said. The company's decision to pour additional capital into India despite regulatory setbacks reflects confidence that the country's massive user base and growing digital economy justify the risk. By expanding into AI, robotics, and deep tech, Krafton is positioning itself to capture value beyond its core gaming business in a market where smartphone penetration continues to climb and internet adoption remains one of the fastest in the world. The push into emerging technologies also aligns with India's policy priorities, potentially smoothing future regulatory interactions after years of bans and restrictions. For companies weighing commitments to India's tech ecosystem, Krafton's sustained investment offers a template for navigating regulatory volatility while securing long-term strategic positioning.