Krafton sees double-digit growth ahead in India’s gaming market

Krafton expects India’s gaming market to clock double-digit annual growth in the coming years, buoyed by its massive user base of nearly half a billion gamers. Despite modest revenues today, the company believes the potential for expansion remains strong.

Speaking to CNBC-TV18, Sean Hyunil Sohn, CEO of Krafton India, said, “Given the size of the number of users, the revenue is yet to grow. But I think it has very strong potential, and we will see at least double-digit growth every year in the coming years.”

The South Korean gaming giant has already invested about $200 million in India since 2021 and plans to commit at least $50 million annually going forward. Sohn said the company is actively exploring both fresh investments and acquisitions in the Indian market.

India, however, poses challenges in monetisation. While the country has 400–500 million gamers, the social gaming revenue is estimated at just over $1 billion. Battlegrounds Mobile India alone has recorded 240 million downloads over four years, but revenue remains relatively modest. A key reason is the low paying user ratio and average revenue per user (ARPU) compared to global standards.

On regulatory developments, Krafton is encouraged by the new law that bans real money gaming but promotes e-sports and social gaming. “We believe the government has the intention to promote and encourage the development of the gaming industry for the benefit of the economy and job opportunities,” Sohn said, adding that the company looks forward to being part of consultations with policymakers.

Krafton also does not foresee any hurdles regarding in-app purchases or subscriptions, saying existing practices align with global standards. As for a potential IPO, Sohn said listing in India is a long-term goal, but one he would be “very happy” to achieve in the future.