Krafton, the South Korean gaming powerhouse recognized for its successful titles such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has made significant strides in the Indian gaming landscape. The company recently finalized an agreement to acquire a controlling stake in the Indian game studio Nautilus Mobile for $14 million. This all-cash deal involves a stake exceeding 75% in the studio known for its popular Real Cricket game series.

Details of the Acquisition

The acquisition, confirmed by Krafton to TechCrunch on Friday, marks a strategic move to solidify its hold in the Indian mobile gaming market. Nautilus Mobile, based in Pune, has a workforce of 45 employees, all of whom will stay with the company post-acquisition.

Nautilus, established in 2013, has seen substantial success with its Real Cricket franchise, which includes notable titles like Real Cricket 24 and Real Cricket Premier League, achieving millions of downloads across platforms.

Krafton’s Strategic Vision

Sean Hyunil Sohn, the CEO of Krafton India, expressed confidence in Nautilus’s ability to enhance Krafton’s capabilities in mobile cricket games, an area with considerable demand in cricket-loving countries like India. “Our development capability in Nautilus will help Krafton double down on its India gaming strategy,” stated Anuj Mankar, Nautilus’s CEO.

The collaboration is aimed not only at refining existing cricket games but also at exploring new game genres to appeal to a broader audience. Krafton has plans to expand Nautilus’s reach to various international markets.

Implications for the Indian Gaming Market

India’s mobile gaming market is flourishing, driven by a young demographic with increasing smartphone accessibility. As reported by market intelligence firm Niko Partners, mobile games account for a staggering 77.9% of total gaming revenue in the country, and this figure is expected to leap from $640 million in 2023 to $1.1 billion by 2028.

Krafton is already experiencing significant growth in India, with a remarkable 119.3% increase in net profit to approximately $889 million last year, a considerable portion attributed to the success of BGMI, which surpassed 200 million downloads in its lifetime.

Future Prospects and Collaborations

The acquisition could allow Krafton to diversify its portfolio beyond BGMI, venturing into cricket and other sports-themed games, thereby broadening its audience base. Nihansh Bhat, corporate lead development at Krafton India, noted the potential for cricket games to resonate not only in India but also in other cricket-playing nations.

As part of the agreement, JetSynthesys, a previous 100% stakeholder in Nautilus Mobile, will remain a significant minority investor and continue to assist the studio in enhancing its esports activities.

Investment Landscape in India

Krafton’s move underscores its commitment to the Indian market, having invested over $200 million to date, with a noticeable focus on gaming and related sectors. The company’s efforts extend beyond game studios, as it has also backed platforms across various domains, from payment solutions to influencer marketing.

“We are looking at the opportunity for acquisitions, moderate investments, and even business collaboration with notable players in the country,” stated Sohn, indicating a proactive approach to identifying further growth opportunities.