South Korean gaming giant Krafton, known for PUBG and Battlegrounds Mobile India (BGMI), will invest an additional $250 million in India over the next three to four years, with a new focus on artificial intelligence, robotics, and deep tech. The commitment, announced Friday, brings Krafton’s total planned investment in the country to more than $500 million, including the $250 million it has deployed since 2021. The company confirmed to TechCrunch that this new pledge is separate from the $670 million India-focused growth fund it launched with Naver and Mirae Asset in December 2025, to which Krafton contributed roughly $137 million at first close.
The announcement followed a meeting between Krafton chairman Byung Gyu Chang and Indian Prime Minister Narendra Modi in New Delhi. The two discussed closer cooperation between India and South Korea in gaming, technology, and emerging sectors, according to a Krafton statement.
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From PUBG ban to a billion-user market
Krafton’s India journey has been anything but smooth. The company’s original hit, PUBG Mobile, was banned in 2020 alongside hundreds of other Chinese-linked apps amid heightened border tensions between New Delhi and Beijing. Krafton responded by launching BGMI in 2021, a localized version of PUBG, and took over publishing duties from Tencent Games. It also moved India servers to Microsoft’s Azure cloud to address data sovereignty concerns.
BGMI itself was banned in 2022, but the Indian government allowed its return on a three-month trial basis in 2023. Since then, the game has thrived, surpassing 260 million downloads in the country. Krafton plans to launch BGMI Lite in India by the end of 2026, a lighter version designed for entry-level smartphones and bandwidth-constrained regions.
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Building a portfolio beyond gaming
Krafton has quietly built a substantial Indian startup portfolio, backing around 18 companies, including four to five gaming studios. Notable investments include esports firm Nodwin Gaming, streaming platform Loco, storytelling platform Pratilipi, audio content provider Kuku FM, and influencer marketing company One Impression.
Last year, Krafton acquired Pune-based Nautilus Mobile, the studio behind the Real Cricket franchise. It also launched KIGI Academy, an industry-academia program designed to train talent in game development and digital creation, signaling a long-term commitment to local capacity building.
The company’s latest push into AI and robotics aligns with a broader trend of global tech firms looking to tap India’s engineering talent and its rapidly digitizing economy. With more than a billion internet users and over 700 million smartphone owners, India offers a massive market for consumer technology and a growing pool of skilled developers.
For Indian startups, Krafton’s continued capital infusion is a positive signal in a funding environment that has been cautious. The company’s willingness to invest through regulatory turbulence — and its pivot to deep tech — suggests it sees India as a strategic long-term market, not just a battleground for gaming supremacy.
As Krafton scales its non-gaming bets, observers will watch whether its AI and robotics investments can replicate the success of its gaming portfolio. The company’s ability to deal with India’s regulatory market and build local partnerships will likely determine the returns on this latest $250 million commitment.
