PUBG Maker Krafton Drops $666 Million on Indian Startups: Why Korea's Betting Big on India Tech

December 19, 2025 became historic as Korean gaming giant Krafton announced a massive $666 million "Unicorn Growth Fund" targeting Indian tech startups—one of the largest foreign investments in Indian tech history.

The Twist: This Isn't About Gaming

Krafton partnered with Korean giants Naver and internet powerhouse Mirae Asset to chase AI startups, fintech unicorns, e-commerce platforms, and enterprise software. They're betting India will produce the next generation of Asian tech giants.

The Deal Structure

• Total fund: $666 million (₹5,500+ crore)
• Initial launch: $333 million (January 2026)
• Krafton commitment: $137 million
• Naver commitment: $137 million
• Target: 25-40 portfolio companies by 2027
• Check size: $10-30 million per company

Why Korea, Why Now?

Three strategic factors are driving this:

China Risks: US tensions, regulatory unpredictability

India's Maturing Ecosystem: 120+ unicorns, $24B VC funding in 2024

Krafton's India Success: BGMI has 240M+ downloads, ₹1,500+ crore annual revenue

What Startups Get Funded?

Target Sectors

• AI/ML infrastructure
• Fintech platforms
• E-commerce
• B2B SaaS
• Healthcare tech
• Edtech

Investment Criteria

• Series B+ stage
• Revenue-generating businesses
• Proven product-market fit
• Clear path to profitability

Beyond Money

This partnership offers strategic value:

• Korean market access
• Technology partnerships
• Monetization expertise from gaming
• Platform tech from Naver
• Exit support from Mirae Asset

What This Means

For Startups: $666M more capital when global VC funding is down 40% YoY. Plus validation signal that attracts other investors.

For India: Signals we're becoming Asian tech hub, not just outsourcing center.

For Ecosystem: Creates India-Korea tech corridor that could define Asian innovation for the next decade.

Who Benefits

Series B/C Stage Startups in AI and fintech are the sweet spot. Companies needing Korea/Japan/SE Asia market access get doors opened by Krafton/Naver networks.

The Bigger Picture

While Silicon Valley debates, Asian tech ecosystems are building practical partnerships. Korea is diversifying from China exposure, and India offers growth with democratic stability. This $666M bet might be the most important tech partnership nobody's talking about.

Related Articles You Should Read:

• What is Agentic AI? The Technology Replacing Apps in 2026 - Complete India Guide — The AI tech these startups will be building and investing in.
• Microsoft Drops ₹1.5 Lakh Crore Bomb on India: Largest AI Investment in Asia Ever — See how Microsoft's mega investment compares to this Korean fund.
• 5 Essential AI Skills to Master in 2025 (Complete Learning Guide) — Perfect for developers aiming to work at these funded start-ups.
• India 5G Shocking Speed: 470K Towers in 2 Years Beat USA & UK! Jio vs Airtel 238M Users — The infrastructure foundation enabling these startup investments to scale.

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