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BattleGrounds Mobile India developer Krafton invests $150m into the Indian gaming market
BattleGrounds Mobile India (BGMI) developer Krafton has announced a $150 million investment into the Indian gaming market. This investment follows Krafton’s previous commitment of $140 million over the past three years to support the growth of Indian gaming startups. The decision to invest in the Indian market comes after BGMI was restored to storefronts in India, following its removal due to political tensions between China and India. Krafton’s ties to Chinese companies and China’s regulatory crackdown were contributing factors to the temporary removal of BGMI.
Krafton’s latest round of investments demonstrates its dedication to building relationships with India and the country’s thriving game industry, despite the challenges faced. In a statement to Techcrunch, Krafton expressed its long-term view on India and its vibrant startup ecosystem, emphasizing its commitment to supporting Indian companies regardless of market conditions and consumer sentiment.
Securing Krafton’s presence in India and exploring new opportunities
While it is unclear if this investment directly influenced the return of BGMI to the Indian market, Krafton’s decision to distance itself from Chinese companies, particularly Tencent, demonstrates strategic foresight. This move allows Krafton to leverage its existing presence in India and strengthen its market position by investing in domestic studios.
Krafton’s investment in India may also be driven by the rise of domestic competitors such as Indus, an upcoming battle royale game. These emerging rivals could pose a threat to BGMI’s dominance in the Indian market, prompting Krafton to prioritize establishing new partnerships with domestic companies to preempt any potential challenges.
While the exact motivations behind Krafton’s investment remain uncertain, the company’s significant presence and financial resources have the potential to make a substantial impact on the Indian gaming investment landscape.