Krafton, Naver, Mirae to set up $666m fund focused on India

Krafton will lead a US$666 million investment fund in Asia, partnering with South Korean firms Naver and Mirae Asset to back tech startups, mainly in India.

The new “Unicorn Growth Fund” marks the first major joint effort among these three South Korean companies in India.

The fund, which will be managed by Mirae Asset Venture India, is expected to start operations in January 2026 with an initial pool of over US$333 million before reaching its full target, according to Krafton.

Cumulative foreign direct investment from South Korea reached about US$6.8 billion by mid-2025 in India, according to government data, as Seoul seeks to diversify supply chains and consumer market exposure away from China.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

South Korea’s India allocation resembles early China playbook, minus the scale

By mid-2025, South Korea had US$6.8 billion in foreign direct investment (FDI) in India. The move echoes its first steps into China, shifting from a crowded home market to faster-growing Asian demand.
Unicorn Growth Fund runs through Mirae Asset Venture India, which typically invests US$500K–US$5M in early stage and US$5M–US$50M in growth rounds 1. That setup signals patient capital with backing across stages, not a quick punt.
Krafton has deployed US$200 million despite regulatory friction. The 2020 PUBG ban forced a localized relaunch, yet the company kept investing. That points to a risk appetite beyond typical corporate venture mandates.

Infrastructure vendors serving gaming portfolios face 2026 compliance sprint

India’s Promotion and Regulation of Online Gaming Act took effect on October 1, 2025 2. Draft rules set a 90-day registration window from application 2, so startups backed by Unicorn Growth Fund in 2026 need compliance tooling on day one.
Rules require a three-tier grievance system 2 plus coordination with banks and payment processors 3. That opens demand for legal tech, payment gateways for esports prize pools, and moderation tools that separate social play from banned real-money games.
Vendors can win if they move early. Targets include B2B SaaS for Know Your Customer (KYC) in gaming, real-time content classifiers that detect monetization shifts triggering “material change” notices to authorities 2, and online dispute resolution platforms chosen before portfolios lock in suppliers.