Krafton, the South Korean gaming company renowned for its notable games such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has acquired a controlling share in the Indian gaming studio Nautilus Mobile. The acquisition, valued at $14 million, is an all-cash transaction. The company confirmed to TechCrunch on Friday that it has obtained a stake exceeding 75% in Nautilus, which is particularly known for its cricket-focused Real Cricket franchise.
Despite the acquisition, Nautilus, based in Pune, will continue to function independently. The transaction is anticipated to be finalized by the end of the month, with all 45 Nautilus employees remaining with the company, according to Krafton. Founded in 2013, Nautilus has achieved millions of downloads across its Real Cricket franchise, which includes five titles like Real Cricket 24 and Real Cricket Premier League.
Krafton intends to harness Nautilus’s expertise in mobile cricket games, especially given the high demand for such games in cricket-loving India. This involves refining existing titles in the short term, while exploring new genres over time, as explained by Sean Hyunil Sohn, CEO of Krafton India, in an interview.
Anuj Mankar, CEO of Nautilus, expressed optimism about the collaboration, stating that their development capabilities would bolster Krafton’s strategy in India. Together, they hope to launch more games, transcending various genres for both Indian and global markets. In addition to strengthening Nautilus’s operations within India, the company also plans to venture into international markets gradually.
India’s mobile gaming market, driven by a young demographic using smartphones, continues to expand. Mobile games comprise a significant portion of the gaming sector’s revenue, accounting for 77.9% of total income according to market intelligence firm Niko Partners. The firm projects that India’s mobile gaming revenue will increase from $640 million in 2023 to $1.1 billion by 2028.
Krafton experienced a 119.3% year-over-year increase in net profit last year, reaching roughly $889 million (KRW 1.3 trillion). India is seen as a pivotal market for sustaining this growth, primarily due to the success of Battlegrounds Mobile India (BGMI), which hit record sales and surpassed 200 million downloads. However, other titles like Bullet Echo India, Road To Valor, and CookieRun have not yet matched the success of this localized version of PUBG.
The acquisition could enable Krafton to diversify beyond BGMI by exploring cricket and other sports games, enticing a broader player base. The strategic move follows Nautilus being entirely acquired by Indian digital entertainment company JetSynthesys in 2020, and a $5.4 million investment by Krafton in 2022. Sohn indicated that Nautilus’s potential motivated the initial investment, but Krafton’s role as a minority stakeholder restricted their ability to support content development fully. With a controlling stake, Krafton seeks deeper collaboration and more substantial involvement in development efforts.
Krafton plans to collaborate with Nautilus to capitalize on the potential of cricket games, not just within India but also in other cricket-playing countries. JetSynthesys will remain a significant minority investor in Nautilus and continue collaborating on aspects like eSports, having already partnered Nautilus’s Real Cricket game with Indian Premier League teams.
Looking ahead, Krafton sees potential for further increases in revenue, user base, and retention, along with new partnerships. To date, Krafton has invested over $200 million in India, excluding the Nautilus Mobile acquisition. The company has made significant investments in gaming and adjacent sectors, including Indian startups such as payments platform Cashfree, audio platform Kuku FM, and influencer marketing platform One Impression. Krafton also supports funds like Lumikai and IMM Investment’s first India fund.
Sohn also communicated Krafton’s interest in pursuing acquisitions, moderate investments, and business collaborations with significant players in India. Nautilus will join Krafton’s portfolio of 14 other game studios globally.
