South Korean Krafton, best known as the publisher of PUBG and Battlegrounds Mobile India (BGMI), has announced plans to invest an additional $250 million in the Indian market over the next three to four years. The funds will go not only toward the gaming business, but also toward the development of artificial intelligence, robotics, and deep tech.

Including the new commitments, Krafton's total planned and completed investments in India will exceed $500 million. The company has invested more than $250 million in the country since 2021. Notably, the fresh package is separate from the India-focused growth fund of $670 million that Krafton announced in December 2025 together with internet conglomerate Naver and investor Mirae Asset. Krafton's contribution to that fund at first close was approximately $137 million.

Meeting with Modi Set the Tone for the Announcement

The news of the expanded investment program came after Krafton Chairman Chang Byung-gyu held a meeting with Indian Prime Minister Narendra Modi in New Delhi. According to the company, the two sides discussed prospects for closer cooperation between India and South Korea in the areas of gaming, technology, and emerging economic sectors.

This political context lends additional weight to the investment decision, transforming it from a corporate move into an element of a bilateral technology partnership.

One Billion Connected Users and a Massive Smartphone Market

India's appeal to Krafton is no coincidence. The country remains the world's most populous, with internet subscribers already exceeding 1 billion and more than 700 million people using smartphones. BGMI has become the cornerstone of the company's presence in this market, accumulating over 260 million downloads.

BGMI is far from the only example of rapid growth in digital entertainment in the country. Free Fire, Candy Crush, and Ludo King consistently rank at the top of downloads in Indian app stores, while mobile gaming as a whole forms a market valued in the billions of dollars. Alongside video games, online gambling is also gaining momentum: poker, Plinko, and the traditionally Indian casino game Andar Bahar are experiencing a surge of interest among smartphone users. Analysts attribute this to the same factor on which Krafton is betting — the mass adoption of affordable mobile internet is opening access to entertainment content for an audience that was still offline just five years ago. It is precisely this potential that explains why the company continues to expand its presence in the Indian market despite regulatory hurdles.

BGMI's Thorny Path Through Bans

The regulatory history of the franchise in India resembles an obstacle course. The key milestones are as follows:

• In 2020, the Indian government blocked PUBG Mobile along with hundreds of China-linked apps amid escalating tensions between New Delhi and Beijing.
• In 2021, Krafton launched a localized version under the name BGMI, removing Tencent Games from the publisher role in the Indian market and migrating servers to the cloud platform Microsoft Azure.
• In 2022, BGMI itself was subjected to a ban.
• In 2023, the federal government permitted the game's return for a three-month trial period, after which the franchise continued its development.

Despite the turbulence, Krafton did not abandon its course. The company plans to launch a lite version of BGMI Lite in India before the end of 2026, which will allow it to reach audiences with entry-level devices.

A Portfolio of 18 Companies and In-House Studios

Over the years, Krafton has supported approximately 18 Indian companies, including four or five gaming studios. Among the most notable assets are Nodwin Gaming, the streaming platform Loco, the literary service Pratilipi, the audio platform Kuku FM, and the marketing platform One Impression.

In addition to venture investments, the company is strengthening its operational presence. Last year, it acquired the Pune-based studio Nautilus Mobile, creator of the popular franchise Real Cricket. In parallel, the KIGI Academy program was launched, bringing together industry and academia to train specialists in game development and digital creativity.

From Games to Deep Tech

The decision to direct $250 million toward AI and robotics appears to be a logical continuation of the strategy rather than a sharp pivot. Krafton has already built a multi-layered infrastructure in India encompassing a flagship game with hundreds of millions of downloads, a diversified startup portfolio, an in-house studio, and an educational program. This foundation is now becoming the base for expansion into sectors that extend well beyond interactive entertainment.