Krafton, the Korea-headquartered company behind India's top-grossing mobile game Battlegrounds Mobile India (BGMI), plans to invest $50-60 million annually in Indian startups and venture capital funds by the end of this year. The company is shifting its focus beyond gaming to artificial intelligence (AI) and consumer internet sectors, aiming to back five VC funds and around six startups in India, according to livemint.com.
The investment strategy involves Krafton acting as a limited partner in five venture capital funds, alongside direct investments in about half a dozen Indian startups. Nihansh Bhat, lead for corporate development at Krafton India, highlighted the company's intent to diversify its portfolio by channeling funds into AI and consumer internet startups. This move reflects Krafton's broader corporate development goals as it seeks to capitalize on emerging technology trends in India, as reported by livemint.com.
This strategic pivot by Krafton comes amid a surge in investments in India's AI and consumer internet sectors, which have collectively attracted close to $900 million recently. Krafton's commitment positions it among significant players expanding beyond traditional gaming into AI, a sector witnessing increased venture capital interest. The company's approach aligns with broader market trends where gaming firms are exploring AI to enhance product offerings and tap into new growth avenues, according to livemint.com.
Krafton's planned annual investment of $50-60 million in Indian startups and VC funds marks a notable step in its expansion strategy. The company aims to complete these investments by the end of the year, signaling a concrete timeline for its shift toward AI and consumer internet sectors in India, as detailed by livemint.com.