Introduction
Krafton, a leading South Korean gaming company, has recently announced its commitment to invest an additional $150 million in India over the next 2-3 years. This strategic move follows the company's approval to trial its popular battle royale game, Battlegrounds Mobile India (BGMI), in the Indian market. The decision to invest comes as a positive development for the local gaming ecosystem, especially since Krafton has previously invested around $140 million in 11 Indian startups and the gaming industry within the past three years.
Background: From Bans to Investments
The journey of Krafton in the Indian gaming landscape has been a tumultuous one. BGMI, a localized and revamped version of the popular PUBG game, was initially banned in India due to national security concerns in mid-2020. However, Krafton made concerted efforts to address these concerns. The company severed ties with Tencent, its former publisher, and shifted its server infrastructure to Microsoft's Azure platform in India. These strategic decisions were aimed at regaining the trust of Indian authorities.
A Boost to the Local Ecosystem
Krafton's recent announcement of a $150 million investment pledge is a significant boost to the Indian gaming ecosystem. BGMI has already emerged as the most popular title in India, playing a central role in the country's esports scene. This investment signifies Krafton's belief in the potential of Indian intellectual properties and content to make a substantial global impact. Sean Hyunil Sohn, CEO of Krafton India, emphasized the company's commitment to unlocking India's potential as a global gaming powerhouse.
Krafton's Role in the Indian Market
BGMI's revival in India has been noteworthy. The game's popularity is evident in its rapid acquisition of around 30 million monthly active users within just three months since its relaunch. This resurgence has been accompanied by revenue generation, marking a turning point in the game's trajectory. Krafton's dedication to the Indian market and the gaming sector is evident through its continuous investments and support for local startups. The company views India as a key growth engine on a global scale.
Investment Commitment and BGMI Trial
Krafton clarifies that its investment commitment and the BGMI trial's conclusion are unrelated. The company emphasizes its ongoing commitment to supporting the local ecosystem regardless of any conditions imposed on it. Krafton's spokesperson affirms that the company has already invested close to $140 million in the Indian startup ecosystem since 2021 and intends to maintain this level of investment. This commitment underscores Krafton's recognition of India's significance as a growth hub for the company on a global level.
Conclusion
Krafton's decision to invest an additional $150 million in India's gaming industry represents a pivotal moment for the country's gaming ecosystem. The revival of BGMI and the game's popularity underline the potential of the Indian market for the global gaming industry. Krafton's perseverance in addressing regulatory concerns and its dedication to the Indian startup ecosystem illustrate the company's long-term commitment to fostering growth and innovation within India. As the gaming landscape continues to evolve, Krafton's support and investments are poised to play a crucial role in shaping the future of gaming in India.
