Krafton India diversifies beyond gaming with increased AI and VC investments

Krafton India is expanding its investment focus beyond gaming into AI startups, consumer internet firms, and venture capital funds, signalling a strategic shift to support early-stage technology companies in the region.

Krafton India is widening its bets beyond gaming as it looks to back more artificial intelligence startups, consumer internet firms and venture capital funds in India, according to Business Standard. Nihansh Bhat, who leads corporate development for the company in India, said Krafton wants to support businesses both financially and through other forms of involvement.

The company has invested close to $250 million in India over the past four to five years and expects to keep deploying about $50 million to $60 million across gaming businesses, AI startups and funds that back such companies, Business Standard reported. Bhat said Krafton adapts its approach depending on the maturity of a business, offering direct capital to larger companies and combining funding with mentorship, advice and incubation for younger ones.

Krafton has now backed about 18 companies in India, but only four or five of them are gaming studios, Bhat said. One of its earliest and most visible bets has been Kuku FM, the audio platform that TechCrunch reported has raised more than $60 million to date, while Business Standard and Mint have previously linked Krafton to additional rounds of funding for the company.

The strategic investor has also begun increasing its exposure to venture capital funds without any direct operating tie to Krafton, after initially focusing on gaming-related vehicles. That broader push follows the April launch of a ₹6,000 crore India-focused fund for early-growth technology startups, which Mint reported is aimed at sectors including AI and digital consumer businesses.