Gaming firm Krafton backs South Korean IMM Investment's maiden India fund

India to be hub of emerging market strategy for PUBG maker Krafton

Krafton India, the local unit of the South Korean maker of Battlegrounds Mobile India, has become the anchor investor in IMM Investment’s maiden India fund.

The IMM India Fund is an extension of IMM Investment, a multi-asset South Korean fund managing $7 billion in assets. It will focus on backing startups across sectors such as consumer technology, software-as-a-service (SaaS), fintech, gaming, media and deep tech.

The fund will primarily target growth-stage companies with strong potential for an initial public offering, leveraging South Korean expertise and capital, said a company statement.

IMM’s investments range from $1 million in seed funding to about $1 billion in growth equity or infrastructure capital.

“Our partnership with IMM marks an exciting new chapter in our journey to foster India’s startup ecosystem. By introducing further South Korean capital, expertise and global perspectives into the Indian market, we aim to help startups in critical sectors scale and thrive, ultimately strengthening India’s position on the world stage,” said Sean Hyunil Sohn, CEO, Krafton India.

The IMM India Fund has closed its first investment in Vellvette Lifestyle, the parent company of Mumbai-based beauty and personal care brand Sugar Cosmetics.

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Beyond direct investments, Krafton India’s strategy includes a fund-of-funds approach, allowing it to tap into high-potential sectors beyond its core focus. In August 2023, Krafton Inc. announced plans to invest $150 million in Indian startups over the next two to three years.

Krafton’s other investments in India include Nodwin Gaming, Pratilipi, KukuFM and Loco, along with investments in venture capital funds such as 3one4 Capital and Lumikai. The company is in talks with other prominent South Korean investors to bring additional funds into India, expanding its presence in the country’s startup ecosystem.

So far, Krafton has invested about $170 million in several Indian startups.

“We are thrilled to be in the fast-growing Indian startup market. For 25 years, IMM Investment has invested in some remarkable startups in South Korea and supported them throughout different stages of growth. Krafton-IMM partnership in India will bring together deep expertise in creation of a system to help support Indian startups,” said Il Bu Joung, president, IMM Investment.