Krafton, known for its blockbuster game PUBG and Battlegrounds Mobile India, is committing an initial Rs. 1,230 crore. Naver, South Korea's leading internet platform, is contributing a similar amount, while Mirae Asset is providing a slightly smaller commitment. Additional investors are expected to help scale the fund to its full Rs. 6,000 crore target over time.

In a major boost to India's thriving startup ecosystem, South Korean companies Krafton, Naver, and Mirae Asset have announced the creation of a Rs. 6,000 crore fund dedicated to investing in high-growth Indian technology companies.

The Unicorn Growth Fund, officially named the Krafton Naver Mirae Asset Unicorn Growth Investment Fund, will begin operations in January 2026 with an initial corpus of over Rs. 3,000 crore. The Korea-domiciled fund will be managed by Mirae Asset Venture India, with Krafton and Naver acting as key limited partners (LPs).

Breakup of the investment from the three firms

Krafton, known for its blockbuster game PUBG and Battlegrounds Mobile India, is committing an initial Rs. 1,230 crore. Naver, South Korea's leading internet platform, is contributing a similar amount, while Mirae Asset is providing a slightly smaller commitment. Additional investors are expected to help scale the fund to its full Rs. 6,000 crore target over time.

What will the investment be used for?

The fund targets growth-stage startups, particularly 'soonicorns' poised to achieve unicorn status, across sectors including artificial intelligence (AI), fintech, digital content and gaming, logistics, consumer goods, healthcare, sports, and media. While investments will span Asia, India remains the core focus, leveraging the partners' combined expertise in platform technology, content, AI, and capital management.

"This partnership marks our first collaborative investment in India," sources close to the deal noted, building on prior ties such as the 2018 Mirae Asset-Naver Asia Growth Fund, which backed Indian firms like Zomato and ShareChat.

Krafton India CEO Sean Hyunil Sohn emphasised the fund's flexible approach. "AI will transform many sectors over the next one to two years, hence we want the focus area of this fund to remain flexible... We aim to discover sustainable businesses in India that create social and economic value, in addition to gaming," Sohn told Moneycontrol.

The initiative builds on Krafton's strong India track record, with over $200 million invested in local startups since 2021, including Nodwin Gaming, Pratilipi, Kuku FM, and Cashfree Payments. Krafton plans to continue direct investments of around $50 million annually alongside the fund.

This move underscores growing South Korean interest in India's startup landscape, which ranks third globally and continues to attract significant foreign capital in innovation-driven sectors.