Krafton may be best known to millions of Indian gamers as the company behind Battlegrounds Mobile India (BGMI), but its ambitions in the country are becoming much bigger than gaming.
The South Korean company is expanding its investment strategy toward artificial intelligence and consumer internet startups, with its broader India investment commitment reaching about $900 million, according to a new report from Mint.
Krafton now plans to invest in five venture capital funds and roughly half a dozen Indian startups by the end of 2026, while maintaining an annual investment pace of around $50 million to $60 million, the report says.
The move is significant because it shows how Krafton's relationship with India is evolving. BGMI remains an important part of its business, but the company increasingly sees India as a broader technology and startup market rather than simply a major gaming audience.
Krafton Is Looking Beyond Gaming in India
Krafton's next phase of investment will put greater emphasis on businesses outside traditional game development.
The company plans to focus particularly on AI and consumer internet opportunities, while continuing to invest approximately $50 million to $60 million each year in Indian companies and investment funds, according to Business Standard.
This doesn't mean Krafton is abandoning gaming.
Instead, it suggests that the company wants its India strategy to cover a wider portion of the country's digital economy.
That's an important shift for a company whose Indian identity has been closely connected with PUBG and BGMI.
What Does the $900 Million Figure Mean?
The headline $900 million figure needs some context.
It should not be interpreted as Krafton having already invested $900 million directly into Indian AI companies.
Krafton's direct investments in India over roughly the past four to five years are closer to $250 million, according to Business Standard.
The larger figure reflects Krafton's broader investment commitment to India as it continues expanding its funding activity. Mint reports that the company is moving toward a strategy involving venture capital funds as well as direct startup investments.
That distinction matters.
Krafton isn't simply writing one $900 million cheque. The company is building a longer-term investment strategy that could spread capital across different businesses, sectors and venture funds.
Five VC Funds and Around Six Startups Are Planned
Krafton's next round of investments could arrive relatively quickly.
By the end of 2026, the company plans to become a limited partner in five venture capital funds while also investing directly in around half a dozen startups, according to Mint's report.
This approach gives Krafton two ways to participate in India's startup ecosystem.
Direct investments allow it to back companies it considers strategically valuable, while investing through venture funds gives it exposure to a wider range of startups without having to select every company itself.
For India's technology ecosystem, that means Krafton's capital could eventually reach companies that have little or no direct connection to gaming.
AI Is Becoming a Bigger Priority for Krafton
Krafton's interest in AI isn't limited to investments in Indian startups.
The company has been moving toward becoming what it calls an “AI First” company, with plans to expand AI research, infrastructure and applications across its wider business.
In an earlier investor presentation, Krafton detailed investments in AI infrastructure, including a GPU cluster and research involving large language models, game AI and AI-assisted workflows.
The company has also been developing AI technology designed specifically for games.
One example is PUBG Ally, an AI-powered companion designed around cooperative gameplay and PUBG-related conversations. Krafton's investor materials described capabilities including situational awareness, planning, communication and adapting to changing gameplay situations.
That makes the new India strategy easier to understand.
Krafton isn't suddenly moving into AI because it happens to be a popular investment category. AI is becoming increasingly central to the company's broader technology strategy.
What Does This Mean for BGMI?
For Indian gamers, the obvious question is whether the investment shift will affect BGMI.
There is currently no indication that Krafton is stepping away from the game.
In fact, BGMI remains deeply localised for India.
Krafton's investor materials have previously highlighted India-specific BGMI partnerships with brands including Hero MotoCorp, Sting and Jio, alongside localised content designed to expand the game's Indian user base.
More recently, BGMI added Indian creator CarryMinati as a fully playable character, rather than simply introducing a themed cosmetic or cameo, according to an announcement reported by India Gazette.
The collaboration includes an in-game collection built around the creator, strengthening Krafton's strategy of tailoring BGMI to Indian gaming culture.
So, the company's move toward AI and consumer internet investment should be viewed as expansion beyond gaming, not a replacement for BGMI.
BGMI Remains Strategically Important
BGMI also continues to contribute meaningful engagement to Krafton's business.
When Krafton reported record first-quarter 2026 results, the company highlighted strong BGMI engagement in India, alongside its wider global gaming performance, according to United News of India.
Krafton's historical investor presentations have also repeatedly described India as a market where the company wants to expand publishing, esports and new business opportunities alongside BGMI.
The latest investment strategy therefore fits into a longer-term pattern: establish a strong gaming presence first, then use that position to expand into other parts of India's digital economy.
Why India Matters So Much to Krafton
India offers Krafton something that few markets can match: a huge population of young digital consumers combined with rapid growth in smartphones, online entertainment, AI and internet services.
Krafton has already been investing in the country for years.
Its earlier investments have included businesses spanning gaming, entertainment and digital content, while its India strategy has gradually expanded beyond companies directly connected with video games.
By late 2025, Krafton had already announced a much larger India-focused investment initiative. TechCrunch reported that the company was launching a $670 million growth investment fund focused on India, reinforcing the scale of its long-term ambitions in the market.
The new emphasis on AI and consumer internet therefore represents another stage of that expansion.
Why Krafton's AI Shift Matters for Indian Startups
The impact could extend beyond Krafton itself.
India's AI startup ecosystem is attracting increasing amounts of capital, but AI companies can also require unusually large investments because of the cost of computing infrastructure, model development and specialised engineering talent.
A strategic investor such as Krafton can potentially offer more than funding.
Its experience in games, AI research, digital entertainment and large-scale online services could make it particularly relevant to startups working in areas such as:
Generative AI
AI-powered consumer applications
Interactive entertainment
Game technology
Digital content platforms
Creator tools
AI agents and virtual characters
Krafton hasn't said that every investment will fall into these categories, but its growing AI focus creates obvious strategic overlap.
Krafton Is Becoming More Than the Company Behind BGMI
For many Indian users, Krafton and BGMI are almost synonymous.
That perception may gradually change.
The company's India strategy now stretches across gaming, esports, startup investment, consumer internet and artificial intelligence.
Its plan to continue deploying roughly $50 million to $60 million annually, while investing through VC funds and directly into startups, suggests Krafton is taking a long-term view of the Indian technology market rather than chasing a short-lived investment trend.
Gaming will remain central to Krafton's identity, particularly as BGMI continues to be one of India's most recognisable mobile games.
But AI could increasingly influence both sides of the business: the companies Krafton invests in and the games Krafton builds.
Final Thoughts
Krafton's expanding India strategy is notable precisely because it goes beyond BGMI.
The company plans to invest $50 million to $60 million annually, participate in five VC funds and back around six startups by the end of 2026, with AI and consumer internet becoming important areas of focus, according to Mint.
At the same time, Krafton's own AI-first transformation shows that artificial intelligence is becoming strategically important inside the company as well. Its work on AI infrastructure and projects such as PUBG Ally suggests that AI could eventually have a much larger influence on gaming itself.
For Indian gamers, none of this currently suggests BGMI is being pushed aside. Instead, Krafton appears to be using the position it built through gaming as a foundation for something much larger.
BGMI helped make Krafton a major name in India. AI and consumer technology could determine how much bigger its India business becomes from here.