Battlegrounds Mobile India (BGMI) developer Krafton is reportedly set to ramp up its investments in India, with plans to inject $50 million annually into the country's burgeoning gaming market. This strategic move aims to capitalize on the void created by the Indian government's ban on Chinese competitors and to solidify Krafton's position as a key player in the region.
India represents a significant opportunity for Krafton, particularly as growth slows in other major markets like China and the United States. The country boasts the world's largest youth population, with an estimated 65% of its 1.4 billion people under the age of 35. This demographic dividend, coupled with increasing smartphone penetration and affordable internet access, has fueled a surge in mobile gaming, making India a prime target for gaming companies.
Krafton's India head, Sean Sohn, acknowledges the unique challenges and opportunities presented by the Indian market. He recognizes that Indian consumers are price-sensitive and may be hesitant to spend heavily on games initially. However, he also notes that once users become engaged with a game, they exhibit strong loyalty. Sohn stated, "It is not easy to come up with a big hit like Battlegrounds again. But it is our key challenge to develop another hit game".
The company's investment strategy extends beyond just game development. Krafton aims to foster the overall gaming ecosystem in India by nurturing local talent and forging strategic partnerships. This includes investing in digital content platforms, technology startups, and other ventures that complement the gaming industry. Krafton has already invested over $200 million in India since 2021 and has committed to investing an additional $200 million over the next few years.
In line with this vision, Krafton is also planning to establish a research and development (R&D) facility in India by 2026. This facility will focus on creating games tailored specifically for the Indian market, incorporating cultural elements that resonate with local players. Potential locations for the R&D center include Bengaluru and Pune.
Furthermore, Krafton is actively seeking acquisitions in India to expand its portfolio and strengthen its presence in the region. Earlier this year, Krafton acquired Pune-based Nautilus Mobile, the developer of the popular "Real Cricket" game. The company also led a $53 million funding round for the fintech company Cashfree Payments.
The Indian government's recent passage of the Promotion and Regulation of Online Gaming Act, 2025, which aims to regulate online gaming and promote esports, is another factor driving Krafton's expansion plans. While the act imposes a blanket ban on all categories of online money games, it also seeks to recognize and develop esports as a legitimate competitive sport. This move is expected to create new opportunities for gaming companies like Krafton to engage with the Indian market.
Despite the positive outlook, Krafton acknowledges the challenges in the Indian gaming ecosystem, including a shortage of skilled talent in game development and inadequate IT infrastructure. To address these issues, the company is investing in initiatives such as the KRAFTON India Gaming Incubator (KIGI) to support early-stage startups and independent developers.
Krafton's increased investment and expansion plans signal its long-term commitment to the Indian gaming market. By focusing on local content, talent development, and strategic partnerships, the company aims to solidify its position as a leading player in one of the world's fastest-growing gaming markets.
