Beyond Battle Royales : Inside Krafton India investment playbook

The Rise of BGMI: A New Era in Mobile Gaming

Battlegrounds Mobile India, the Indian version of the popular battle royale game PUBG Mobile, has been making waves in the gaming industry since its release in 2020. The game has been a massive success, attracting millions of players worldwide. However, what sets BGMI apart from its predecessor is its strategic approach to the gaming industry.

A New Business Model

BGMI’s parent company, Tencent Games, has positioned itself as a venture capitalist, backing sectors that complement its long-term vision. This approach has allowed the company to diversify its revenue streams and reduce its dependence on a single game. Key sectors backed by BGMI: + Esports: BGMI has invested heavily in the esports scene, partnering with top teams and players to promote the game. + Gaming hardware: The company has also invested in gaming hardware, such as gaming laptops and smartphones, to create a seamless gaming experience. + Content creation: BGMI has backed content creators, such as YouTubers and streamers, to produce high-quality content for the game.

A Long-Term Vision

BGMI’s long-term vision is to create a sustainable gaming ecosystem that benefits both players and the company. To achieve this, the company has been investing in various initiatives, such as:

Game development: BGMI has been developing new games and updates for PUBG Mobile, ensuring that the game remains fresh and exciting for players. Community engagement: The company has been engaging with the community, listening to feedback and suggestions, to improve the game and create a positive gaming experience. Partnerships: BGMI has partnered with other companies to create new gaming experiences, such as virtual reality (VR) and augmented reality (AR) games.

Instead, it focuses on long-term partnerships that prioritize the growth and success of its portfolio companies.

The Rise of Krafton

Krafton, a South Korean gaming firm, has been making waves in the Indian gaming industry with its strategic investments and long-term partnerships. Founded in 2016, Krafton has established itself as a major player in the gaming industry, with a portfolio that includes some of the most popular games in the country.

Key Investments

NODWIN Gaming: Krafton’s first investment in March 2021 marked the beginning of its journey in the Indian gaming industry. NODWIN Gaming is a leading esports organization that has been instrumental in promoting Indian gaming talent.

The Rise of Fintech in Media and Entertainment

The media and entertainment industry has long been a hub for innovation, with companies constantly seeking new ways to engage audiences and drive revenue. In recent years, the rise of fintech has brought a new dimension to this space, with payments playing a crucial role in the growth of the industry.

These studios have developed games that can be played on various platforms, including PC, console, and mobile devices. Krafton’s investment in these studios has enabled them to create games that can be played on multiple platforms, increasing their reach and revenue potential.

Benefits of Cashfree’s Solutions for Krafton’s Portfolio Firms

Krafton’s portfolio firms can benefit from Cashfree’s solutions in several ways. Here are some of the key benefits:

Increased Revenue Potential: By integrating Cashfree’s solutions, Krafton’s portfolio firms can increase their revenue potential by expanding their reach to a wider audience. Improved User Experience: Cashfree’s solutions can help Krafton’s portfolio firms improve the user experience by providing a seamless and secure payment experience. Enhanced Customer Engagement: By offering Cashfree’s solutions, Krafton’s portfolio firms can enhance customer engagement and loyalty, leading to increased retention rates and positive word-of-mouth. * Reduced Risk: Cashfree’s solutions can help Krafton’s portfolio firms reduce the risk associated with payment processing, ensuring a secure and reliable payment experience for their users. Here are some of the key benefits:**

Payment Processing: Cashfree’s solutions can help Krafton’s portfolio firms process payments efficiently and securely, reducing the risk associated with payment processing.

The Rise of Indian Gaming

The Indian gaming industry has been growing steadily over the years, with a significant increase in the number of gamers and the number of games being developed. However, despite this growth, the industry still faces several challenges, including a lack of investment, inadequate infrastructure, and a shortage of skilled developers.

The AAA Gaming Scene in India

The AAA gaming scene in India is a topic of much discussion, particularly when compared to China’s significant success with titles like Black Myth: Wukong. While India has a large and growing gaming community, the country’s gaming industry is still in its infancy, with many games being developed by small, independent studios. * Some of the notable AAA games developed in India include: + The Escapists 2: A sandbox-style game developed by Team17 and published by Curve Digital. + The Surge 2: A sci-fi action RPG developed by Deck13 Interactive and published by Focus Home Interactive. + The Outer Worlds: A sci-fi RPG developed by Obsidian Entertainment and published by Private Division.**

The Gap Between Indian and Chinese Gaming Industries

A notable gap exists between the Indian gaming industry and its Chinese counterpart. While China has been successful in developing AAA games like Black Myth: Wukong, India’s gaming industry is still struggling to catch up. * Some of the reasons for this gap include: + Lack of investment: The Indian gaming industry lacks the significant investment that China’s gaming industry has received from the government.

However, mobile and mid-core games can be developed with smaller teams and lower budgets. This allows Krafton to focus on creating high-quality games that can compete with AAA titles.

The Rise of Mobile and Mid-Core Games

In recent years, the mobile gaming market has experienced tremendous growth, with millions of players worldwide. The rise of mobile gaming can be attributed to the accessibility and convenience of mobile devices. With the proliferation of smartphones and tablets, players can now access high-quality games anywhere, anytime. Key factors contributing to the growth of mobile gaming include: + Improved hardware and software capabilities + Increased accessibility and convenience + Growing demand for casual and social gaming experiences + Availability of free-to-play models and in-app purchases

The Benefits of Focusing on Mobile and Mid-Core Games

By focusing on mobile and mid-core games, Krafton can tap into the vast and growing market.

The Importance of Early Testing and Feedback

Early testing is a crucial aspect of game development, allowing developers to identify and address potential issues before they become major problems. This process involves playing the game with a small group of people, gathering feedback, and using that feedback to make improvements. By doing so, developers can refine their game mechanics, balance, and overall player experience.

India Focus

Krafton’s investments in India are primarily driven by the country’s growing gaming market. The Indian gaming industry has seen significant growth in recent years, with the market size expected to reach $10 billion by 2025. Krafton’s investments in India are aimed at tapping into this growing market and expanding its presence in the region. Key highlights of Krafton’s India focus: + Investing in local talent and talent acquisition + Building strategic partnerships with Indian gaming companies + Expanding its portfolio of games and services + Enhancing its presence in the Indian market through targeted marketing and advertising efforts

Investment Strategy

Krafton’s investment strategy in India is focused on identifying and investing in companies that have a strong potential for growth and scalability. The company looks for investments that can help it tap into the Indian gaming market and expand its presence in the region. Key aspects of Krafton’s investment strategy: + Identifying and investing in companies with a strong track record of growth and scalability + Focusing on companies that have a unique value proposition and competitive advantage + Building long-term relationships with portfolio companies + Providing strategic guidance and support to portfolio companies

Portfolio Companies

Krafton’s portfolio companies in India include IMM India Fund, 3 one 4 Capital, and Lumikai.

Krafton’s diversified investment strategy is transforming the gaming industry and beyond.

The Evolution of Krafton’s Investment Strategy

Krafton, a South Korean gaming conglomerate, has undergone significant transformations in its investment strategy over the years. From its early days as a gaming company to its current status as a diversified conglomerate, Krafton has expanded its focus to include various sectors such as gaming, startups, deeptech, and AI.

Gaming and Startup Investments

Krafton’s gaming and startup investments have been a significant focus area for the company. In 2020, Krafton invested $150 million in India, which has provided a substantial dry powder left for future investments. This investment has enabled Krafton to tap into the growing Indian gaming market, which is expected to reach $10 billion by 2025.