Krafton hikes India bet with new $670M fund

Core Viewpoint - Krafton is launching a growth investment fund called the Unicorn Growth Fund, focusing on the Indian market to tap into the largest internet user base globally [1] Group 1: Fund Details - The Unicorn Growth Fund is a collaboration between Krafton, Naver, and Mirae Asset, aiming to deploy up to ₹60 billion (approximately $669.3 million) over four years [1] - The fund will be managed by Mirae Asset Venture India and is expected to start operations in January with an initial size of over ₹30 billion (about $334.6 million) [2] - Krafton will contribute ₹12.3 billion (approximately $137.2 million) at the first close, with Naver's capital commitment expected to be similar [2][3] Group 2: Investment Strategy - Investments from the fund will primarily be treated as financial positions rather than strategic bets, with varying levels of engagement with portfolio companies based on opportunities [4] - Typical investment sizes are expected to range between $10 million and $30 million [3] Group 3: Previous Investments and Market Presence - Krafton has invested over $200 million in India across gaming, content, and fintech sectors, with recent investments in companies like Cashfree and IMM Investment [5] - The company launched a gaming incubator in India in 2023 and acquired a controlling stake in Nautilus Mobile for $14 million [5] Group 4: Challenges and Regulatory Changes - Krafton's expansion in India faced challenges, including the ban of BGMI in 2022, which was lifted in 2023 after a trial approval [6] - BGMI, launched in 2021, has surpassed 240 million downloads and was developed as a localized version of PUBG Mobile, which was banned in 2020 [7] Group 5: Future Strategy - With the new fund, Krafton aims to extend its strategy in India beyond gaming, investing in a broader range of technology startups to establish a long-term presence in a rapidly growing digital market [8]