Game Developer Eyes Acquisitions and Growth as India Becomes a Key Market After Chinese App Ban
Key Highlights:
- Krafton to invest over $50 million annually in India.
- Focus on expanding Battlegrounds Mobile India and digital content business.
- Plans to acquire Indian gaming companies and develop India-first games.
- Strategy follows slowed growth in China and the US.
- India accounts for 200 million players and growing.
Krafton Shifts Focus to India’s Booming Gaming Sector
South Korean video game publisher Krafton, the developer of Battlegrounds Mobile India (BGMI) and PUBG: Battlegrounds, is making India a key focus area. The company reportedly plans to invest more than $50 million (₹441 crore) annually in the Indian gaming ecosystem.
This move comes as Krafton aims to benefit from India’s strong player base and the long-term ban on Chinese gaming apps, which has reshaped the mobile gaming market in the country.
India: A Strategic Market for Krafton
Krafton’s plans include:
- Growing Battlegrounds Mobile India, one of the top mobile games in the country.
- Acquiring Indian gaming startups to build local capabilities.
- Creating more localized games suited to Indian players’ preferences.
- Navigating a market where players are cautious spenders but highly loyal.
“It is not easy to come up with a big hit like Battlegrounds again. But it is our key challenge to develop another hit game,” said Sean Sohn, CEO of Krafton India.
Challenges in the Indian Gaming Market
Although India is rich in opportunity, Krafton acknowledges key hurdles:
- Players are less likely to spend money on in-game items.
- Regulatory uncertainties still exist due to past app bans.
- Heavy reliance on the free-to-play model with monetization based on optional purchases.
“Indian gamers are loyal once they enjoy a game, even if they are hesitant to spend at first,” Sohn added.
Krafton’s Investments in India So Far
- Around $200 million (₹1,765 crore) has been invested in Indian startups and content.
- This figure represents approximately 9% of Krafton’s global investments.
- Future growth depends on the success of the company’s India-focused strategy.
From PUBG Ban to Battlegrounds Mobile India
- In 2020, PUBG Mobile was banned in India due to links with Chinese tech firm Tencent.
- The game was relaunched as Battlegrounds Mobile India in 2021, fully developed and published by Krafton.
- It has since become one of the most downloaded and played games in the country.
What’s Next for Krafton in India?
- Continued yearly investments of $50 million+.
- Increased focus on acquisitions and local game development.
- Deeper partnerships with Indian gaming creators and studios.
- Expansion beyond mobile gaming into other forms of digital entertainment.
