Korean gaming company Krafton has confirmed that it will invest $50 million annually in the Indian market over the next 3-4 years. 

India passed a bill banning all forms of real-money online gaming earlier this year, while also vowing to invest in esports. 

Speaking to The Times of India, Krafton’s Managing Director in India, Sean Hyunil Sohn, stated that the bill is beneficial for the company. He stated that, from a regulatory perspective, it will be more structured and transparent. And since the government has announced its intention to promote esports, it is overall positive.

Krafton has invested $200 million in India over the past few years, across 17 companies and funds. Its portfolio includes audio platform Kuku FM, Shuru, Cashfree Payments, and mobile game maker Nautilus Mobile.

Sohn confirmed the company will continue to invest at the same rate. He added, “We will continue the pace of investments, and will invest around $50 million annually over a period of 3-4 years. 

“Compared to 2020, when we started our investments, the market is more mature now, and many companies are sizable and even using AI to scale up. The areas where we are looking to invest are gaming, fintech and payments, and digital media.”

BGMI Franchise League Possible

Krafton has gained popularity in India through Battleground Mobile India (BGMI), which has 200 million users in India, generating annual global sales of around $7 billion.

In an interview with Esports.net earlier this year, Sohn said the company may look to launch a franchise league, but stressed it is tricky to sustain. He said if they do plan one for the future, they will have to plan very carefully. 

As part of the continued investment in India, Sohn also stated that they will aim to develop new games. He confirmed that the company will be hiring new developers and engaging with external partners. 

India Aims To Dominate Online Gaming Market

The investment comes as Indian Prime Minister Modi said he hopes the Promotion and Regulation of Online Gaming Act will help India “dominate the global online gaming market.”

There has been some backlash to the bill, which has forced major fantasy sports operators to withdraw investment. Notably, Dream11 withdrew from its deal to sponsor India’s national cricket team. 

Critics estimate the bill has led to the loss of ₹20,000 crore ($2.3 billion) in annual tax revenue and put over 200,000 jobs at risk.

Krafton, however, feels it can benefit where others lose out and is committed to investing in the country.