BattleGrounds Mobile India developer Krafton has committed to a $150m investment into the Indian gaming market.
The news comes after Krafton has already committed $140m to growing Indian gaming startups over the past three years, reports tech outlet Techcrunch. This comes mere months after BGMI was restored to storefronts in the Indian market after being removed for an extended period, due to political tensions between China and India, and the ties that Krafton had to Chinese companies
This latest round of investments indicates that for the foreseeable future Krafton is committed to building bridges with India and its burgeoning game industry despite the problems they’ve faced.
Techcrunch quote Krafton as saying, “We continue to hold a long-term view on India and its vibrant startup ecosystem, and we understand perfectly well that there are a number of reasons that can impact a company’s performance, including market conditions and consumer sentiment, among others, and we at Krafton will continue to support them.”
Securing Krafton’s ongoing presence in India
There is no evidence that this investment played any part in helping to bring BGMI back to storefronts in India but with China’s regulatory crackdown, Krafton’s decision to end their close relationship with companies such as Tencent, at least as far as India is concerned, looks like a smart move. It also gives Krafton free reign to take advantage of their existing presence and strengthen their foothold in the market by making investments into domestic studios.
Home-grown competitors to BGMI such as upcoming battle royale Indus and the potential threat they pose to their flagship title BGMI’s dominance may be accelerating their plans to dig deep into the domestic market and establish new ties with domestic companies that will preempt rivalries.
While the full motives for Krafton's investment in India are uncertain, the company certainly has the presence and spending power to make a difference to the Indian investment scene.