SUMMARY
The gaming giant said it aims to nurture India’s local talent, foster innovation and propel India to the forefront of the gaming industry
KRAFTON has invested $140 Mn into 11 Indian startups so far, including Kuku FM, One Impression, FRND and Nautilus
The development comes as India has implemented a 28% GST on online gaming companies without making a distinction between online games and video games
After making a comeback to India, South Korean gaming giant KRAFTON has announced its commitment to invest $150 Mn in India over the next two to three years on Thursday (August 10) for investing in Indian gaming and entertainment startups. The BGMI maker has been making investments in India since March 2021.
The gaming giant aims to nurture India’s local talent, foster innovation and propel India to the forefront of the gaming industry.
KRAFTON will be continuing its investments in gaming and associated areas, including esports, multimedia entertainment, content creation and audio platforms. KRAFTON has also expanded its focus to include the creator economy and deeptech.
Commenting on their vision for India, Sean Hyunil Sohn, CEO of KRAFTON India said, “We firmly believe in India’s potential as a key player in the global gaming and technology industry, and our commitment to investing an additional $150 Mn over the next two to three years reflects our dedication to fueling this growth.”
Sohn added that the gaming major also believes in the power of Indian IPs and content in making a lasting global impact.
The announcement comes a couple of months after KRAFTON relaunched BGMI in India.
After PUBG Mobile got banned in India in 2020, KRAFTON cut ties with Tencent to relaunch the game as BGMI (BattleGrounds Mobile India). However, the Indian government banned the game again in July 2022 citing issues with Indian users’ data.
Coming back to its investments, KRAFTON has invested $140 Mn into 11 Indian startups so far. Some of KRAFTON’s notable investments include One Impression (secured $10 Mn this March), Kuku FM (KRAFTON participated in Series B round), Nautilus ($5.4 Mn invested by KRAFTON in February 2022) and FRND ($6.5 Mn invested by the gaming giant).
Sharing his views on business objectives, Nihansh Bhat, corporate development & venture investing lead, India & MENA, KRAFTON, said, “Our strategic investments are carefully chosen to align with our expertise and experience, empowering innovative ideas and startups to thrive… Our investment momentum will continue as we seek to establish a dynamic and evolving portfolio across various segments in India.”
The development comes as India has implemented a 28% GST on online gaming companies, which might have far-reaching implications for gaming startups in the country.
Further, the government is yet to make a distinction between online games with and without wagering, leading the industry to send a letter last month to the Prime Minister’s Office, the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Information and Broadcasting.
“The negative sentiments and social stigma towards games involving monetary wagering are unfairly linked to video games in Indian society, leading to misconceptions about our industry’s products and services,” the letter read, signed by 45 gaming studios in the country.
