Krafton India eyes 10 deals in 2026 under its Rs 6,000-cr tech fund

Chennai: Krafton India is planning to invest in about 10 startups in 2026, with deal activity set to begin this month, as part of the Korean gaming giant's broader push into India's consumer technology and artificial intelligence ecosystem, Sean Sohn, chief executive of the company's India unit, told TOI. The investments will be made from its Rs 6,000-crore tech fund — Unicorn Growth Investment Fund — in which Krafton will contribute 40%, alongside Korean internet company Naver and Mirae Asset. The fund will focus on growth-stage startups and those preparing for public listings, with an average ticket size of $15 million to $30 million. The fund will target sectors such as e-commerce, fintech, and digital content. According to Sohn, several of Krafton's existing portfolio companies have already integrated AI into production and development processes, resulting in cost efficiencies, though he cautioned that there is significant hype around the technology. "Some of our portfolio companies have already adopted AI aggressively in production and development and achieved cost savings. But there is also a lot of hype around its use," he said, referring to Krafton's $250 million in investments over the past five years. Sohn said that while AI is disruptive, it will be an essential part of growth. However, building strong products and achieving commercial traction remain more critical, with or without the technology. He added that Krafton plans to invest around $100 million annually over the next few years, both through the fund and independently. This is part of the South Korean gaming company's efforts to diversify beyond gaming through strategic investments and acquisitions in media and entertainment. Krafton India has crossed 270 million downloads in four years, while revenue and daily active users are growing at 15%–20% annually, in line with the broader Indian market, and are expected to maintain that pace. Sohn said 90% of Krafton India's revenue comes from its hit game BGMI. While gaming is a hit-driven business, he said the company aims to diversify, with a new game launch slated for later this year and expected growth from its cricket title. Addressing the contrast between his optimism and broader scepticism around consumer internet and moderated Indian tech funding, Sohn said Krafton's conviction is based on its experience in emerging markets such as China, and that its bets have a longer time horizon than typical financial investments. "It is still very early for us to make a judgment, but some companies have grown more than 20x or 50x in revenue, while others have shut down. We believe India will deliver strong outcomes in the long term, as long as the right bets are made," he said.