Krafton Invests $900M in India’s AI & Consumer Internet Sectors
By Business Desk
Krafton shifts $900M from gaming to AI and consumer internet in India, focusing on strategic investments in startups and venture capital funds.
Krafton is fundamentally reorienting its investment strategy in India, committing a substantial $900 million towards artificial intelligence (AI) and consumer internet platforms. This move marks a significant departure from its prior focus on the gaming sector.
The South Korean firm, known for Battlegrounds Mobile India (BGMI), has faced monetization hurdles within India’s casual gaming market. Sustainable growth proved challenging without engaging in real-money games or expanding internationally.
Investment Redirection and Active Strategy
Krafton’s head of corporate development in India, Nihansh Bhat, outlined plans to invest $50 million to $60 million annually. This capital will flow into venture capital funds and approximately six startups by the conclusion of 2026.
The new approach emphasizes providing strategic advice and actively contributing to the growth of its portfolio companies. This represents a clear shift from a more passive investment stance.
Key Investment Metrics
- Total commitment: $900 million (including joint fund)
- Annual investment target: $50 million to $60 million
- Target startups by 2026: Approximately 6
- Parent company stock performance: Trading 29% below its 52-week high as of August 2026
Cautious AI Adoption and Portfolio Growth
The company specifically targets AI tools capable of supporting Indian-language voice applications. Management, however, remains cautious, prioritizing genuine commercial traction and robust product development over fleeting AI trends.
This vigilance stems from acknowledging the inherent high risks associated with early-stage technology investments. Krafton has a track record of Indian startup investments, including audio platform Kuku FM and financial services provider Cashfree.
These ventures are part of an expanding portfolio, which also features the ‘Unicorn Growth Fund,’ co-anchored with partners like Naver and Mirae Asset. The future performance of the specific AI and consumer internet startups announced later this year will be critical for market observers.