Krafton Inc., the South Korean game company with the highest proportion of overseas revenue, is ramping up its efforts to capture the Indian market as the company recognizes the future potential of the country’s gaming population and rapid market growth and plans to expand its strategic investments in various digital sectors, including gaming for the market.

According to sources on Tuesday, since its entry into India in 2021, Krafton has invested over 120 billion won ($90.8 million) in local companies. Starting with a 22.5 billion won investment in Nodwin Gaming, India’s largest e-sports company, in March 2021, Krafton has subsequently invested in gaming streaming platform Loco and game development studio Nautilus Mobile. The investment scope also extends beyond the gaming sector to include web novels, social platforms and audio content companies.

“While the Indian gaming market is still relatively small in terms of scale, it is quickly becoming a strategically important country due to its rapid growth rate. We are investing in India’s digital ecosystem, recognizing its potential beyond just the gaming market,” said a Krafton official.

According to consultancy Red Seer, the size of the Indian mobile gaming market reached $1.8 billion in 2021 and is projected to grow to $7 billion by 2024, nearly quadrupling in just three years.

India’s gaming user base reached 339.9 million in 2021, making it the second-largest in the world after China. This figure is expected to surpass 529.1 million by 2025.

India is the fastest-growing gaming market in Asia, according to data from Korea Creative Content Agency. Mobile gaming accounts for 86 percent of the overall gaming market, and interest in e-sports has significantly increased in the local market after the Covid-19 pandemic.

Krafton’s Battlegrounds Mobile India (BGMI), the once chart-topping mobile game in the South Asian market, resumed operations on Monday after months of service disruption. BGMI was abruptly blocked on the Indian app market in July last year but received approval to lift the ban from Indian authorities on May 18, after a hiatus of approximately 10 months.

The resumption of service for BGMI is expected to generate annual revenue of 100 billion to 120 billion won.

In the first quarter, Krafton achieved remarkable performance with revenue of 538.7 billion won and operating profit of 283 billion won, making it the second-best performing Korean game company after Nexon. Krafton’s revenue reached a record, with overseas revenue accounting for 95 percent of its total revenue. This represents the highest proportion of overseas revenue among Korean game companies.

By Kim Dae-gi and Minu Kim

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