Krafton Expands Footprint in India Through Acquisition of Nautilus Mobile

Krafton, the South Korean gaming powerhouse recognized for its blockbuster titles such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has announced the acquisition of a controlling stake in Nautilus Mobile. This deal, valued at $14 million and executed in cash, marks a significant step for Krafton in strengthening its presence in the burgeoning Indian gaming market.

Acquisition Details

According to reports from TechCrunch, Krafton has secured “north of 75%” ownership in Nautilus Mobile, the studio renowned for its cricket-centered gaming franchise, Real Cricket. This acquisition will allow Nautilus to maintain its operations as an independent entity, preserving its current workforce of 45 employees.

Background on Nautilus Mobile

Founded in 2013, Nautilus has achieved remarkable success with its Real Cricket series, which has seen millions of downloads across various titles, including Real Cricket 24 and Real Cricket Premier League. The studio’s focus on cricket games aligns well with India’s passionate sports culture.

Strategic Goals

With this acquisition, Krafton aims to reinforce Nautilus’s capacity in mobile cricket gaming, an area poised for growth in cricket-crazy India. Krafton’s India CEO, Sean Hyunil Sohn, emphasized that this partnership is intended to enhance the studio’s existing offerings while also exploring new gaming genres. Nautilus’s CEO, Anuj Mankar, added, “Our development capability in Nautilus will help Krafton double down on its India gaming strategy, and together, we can probably build more games, more genres, both for the Indian market and global market going forward.”

Market Context

India’s mobile gaming market is poised for significant growth, driven by a young population increasingly engaging with smartphones. According to market intelligence firm Niko Partners, mobile gaming accounted for 77.9% of the country’s gaming revenue, with expectations for revenue growth from $640 million in 2023 to $1.1 billion by 2028.

Krafton’s Vision for Growth

Krafton is gearing up to create a broader array of games beyond its popular BGMI, which alone has surpassed 200 million downloads and achieved its highest revenue last year. The company’s venture into cricket and sports-related games aims to tap into new user demographics and enhance engagement.

Implications of the Acquisition

This acquisition could potentially enable Krafton to explore diverse avenues for gaming success and build a more robust gaming portfolio. The strategy aligns with the company’s goal of capturing a significant portion of the Indian gaming market while facilitating Nautilus’s expansion into new regions.

Financial Investment and Future Initiatives

Prior to this acquisition, Krafton had already invested over $200 million in various Indian startups, primarily focusing on the gaming sector. The collaboration between Krafton and Nautilus will include continued partnerships with existing stakeholders, such as JetSynthesys, which remains a significant minority investor.

Conclusion

With this strategic move, Krafton aims to harness Nautilus’s development prowess to capitalize on the fast-growing mobile gaming sector in India. As the gaming landscape continues to evolve, this partnership is likely to play a crucial role in shaping the future of mobile gaming both in India and beyond.