Krafton Doubles India Bet With $250M Push Into AI and Deeptech Beyond Gaming

Krafton India Investment Expands to $500 Million

Krafton, the South Korean gaming company known for PUBG and Battlegrounds Mobile India (BGMI), announced a $250 million investment in India over the next three to four years, marking a strategic expansion beyond gaming into AI and deeptech1

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. This commitment doubles Krafton's total planned investment in the country to over $500 million, building on the $250 million already deployed since 20211

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. The announcement came during a meeting between Krafton chairman Byung Gyu Chang and Indian Prime Minister Narendra Modi in New Delhi, where both leaders discussed opportunities for collaboration in gaming and innovation between India and South Korea2

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Investment Beyond Gaming Targets Emerging Technologies

The new $250 million investment in India represents a deliberate pivot toward emerging sectors including artificial intelligence (AI), robotics, and deeptech1

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. This strategic shift comes as the real-money gaming sector faces regulatory pressure, pushing investors to explore alternative opportunities in India's technology landscape2

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. Chang emphasized Krafton's commitment to working alongside India's growing community of creators, developers, and entrepreneurs to build globally relevant experiences and technologies2

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. The investment is separate from Krafton's $670 million India-focused growth fund launched with South Korean internet conglomerate Naver and Mirae Asset Global Investments in December 2025, where Krafton committed approximately $137 million at first close1

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Indian AI & Deeptech Startups Attract Global Capital

Krafton's expanded focus on Indian AI & Deeptech Startups aligns with broader market momentum in India's AI economy. During the first six months of 2026, Indian AI startups raised $676 million, driven by policy clarity, government incentives, and growing investor confidence2

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. India's AI economy is projected to become a $126 billion opportunity by 2030, making it an attractive destination for technological collaboration and capital deployment2

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. The South Korean gaming company has already backed approximately 18 Indian companies since March 2021, including four to five gaming studios1

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. Notable investments include esports startup NODWIN Gaming, streaming platform Loco, self-publishing platform Pratilipi, audio content platform Kuku FM, and influencer marketing firm One Impression1

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Navigating Regulatory Challenges While Building Local Presence

Krafton's journey in India has involved navigating significant regulatory hurdles. The Indian government banned PUBG Mobile in 2020 alongside hundreds of Chinese-linked apps amid escalating tensions between New Delhi and Beijing1

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. Krafton responded by introducing Battlegrounds Mobile India in 2021, dropping Tencent Games as publisher and migrating India servers to Microsoft's Azure cloud to address government concerns1

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. However, BGMI itself faced a ban in 2022 before returning on a three-month trial basis the following year1

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. Despite these setbacks, BGMI has surpassed 260 million downloads, demonstrating India's importance as a market with over a billion internet subscribers and more than 700 million smartphone users1

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. Krafton plans to launch BGMI Lite in India by the end of 20261

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Building Infrastructure Through Acquisitions and Talent Development

Beyond financial investments, Krafton has been strengthening its local operations through strategic acquisitions and skill-development initiatives. Last year, the company acquired a controlling 75% stake in Pune-based Nautilus Mobile, the studio behind the Real Cricket franchise1

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. Krafton also launched KIGI Academy, an industry-academia program designed to train talent in game development and digital creation1

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. These initiatives reflect Krafton's long-term commitment to nurturing India's digital entertainment ecosystem and building capabilities that extend beyond immediate gaming interests. As the real-money gaming sector continues facing regulatory challenges, Krafton's diversification into AI and deeptech positions the company to capitalize on India's high smartphone penetration and ease of access to digital payments, which enable micro-transactions across various technology sectors2

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