Krafton India, the maker of Battlegrounds Mobile India, is planning to diversify its investment portfolio beyond gaming companies. According to reports from Business Standard, the company's India lead for corporate development, Nihansh Bhat, revealed that Krafton India aims to back and support companies in both gaming and non-gaming sectors through various means including financial backing and mentorship programs. As per Business Standard, Bhat explained that if there are companies that are more sizeable and mature, they find ways of backing them, while for less mature companies, they find other ways such as mix of mentorship, advice and incubation programs.
The South Korea-headquartered e-sports major has already invested close to $250 million in India over the last four to five years. As reported by Business Standard, the company plans to continue investing roughly $50-60 million in gaming companies, startups working in the artificial intelligence space, and venture capital funds that invest in these startups. Bhat noted that out of the 18-odd companies Krafton India has invested in to date, only four or five would be gaming studios. This diversified approach demonstrates the company's strategic shift from focusing primarily on gaming to expanding across multiple sectors.
According to the report, Krafton India has started increasing its investments in venture capital funds that do not have any direct working relationship with the company. Bhat explained that initially, the company invested only in funds that focused on gaming companies, but quickly realized that since the gaming sector was still at a nascent stage, no fund could direct all its energies and money to only supporting such companies. This strategic pivot allows the company to tap into broader investment opportunities while maintaining its gaming sector focus.
As reported by Business Standard, Krafton India has been supporting companies through multiple rounds of fundraising when it feels there is synergy. Bhat emphasized that this advantage comes from having a strategic investor relationship, unlike most companies that typically invest in one or two rounds. The company's key focus areas include consumer internet and media entertainment companies such as Kuku FM, which was one of the earliest investments made by the company. This multi-round approach provides Krafton India with deeper engagement opportunities and greater influence in portfolio companies' growth trajectories.
In April this year, Krafton India launched a ₹6,000 crore India-focused fund to back early-growth-stage technology startups in the country. According to the report, this fund represents the company's commitment to expanding its investment portfolio beyond gaming and into broader technology sectors, particularly targeting AI startups and consumer internet companies. The fund launch demonstrates Krafton India's serious commitment to diversifying its investment approach and establishing itself as a significant player in India's startup ecosystem. Industry stakeholders noted that while access to capital remains available in India, matching sectoral expertise is crucial for VC funds.
