Krafton's Strategic Acquisition of Nautilus Mobile to Boost India's Gaming Market

Krafton, the South Korean gaming powerhouse renowned for its global hit PUBG: Battlegrounds, has made a strategic move by acquiring a controlling stake in the Indian gaming studio Nautilus Mobile for $14 million. This acquisition marks a significant step in Krafton's strategy to deepen its presence in India's burgeoning mobile gaming market. Nautilus Mobile, known for its popular Real Cricket franchise, will continue to operate independently, maintaining its team of 45 employees. The acquisition is expected to close by the end of the month.

Nautilus Mobile, founded in 2013, has carved a niche in the mobile gaming sector with its cricket-focused games, which have amassed millions of downloads. With this acquisition, Krafton aims to enhance Nautilus's core competencies in mobile cricket games, a genre with high demand in cricket-loving India. Krafton's CEO in India, Sean Hyunil Sohn, emphasized the potential for collaboration to expand into new gaming genres and markets.

India's mobile gaming market is on a growth trajectory, driven by a young, tech-savvy population. According to Niko Partners, mobile games account for 77.9% of the country's gaming revenue, projected to grow from $640 million in 2023 to $1.1 billion by 2028. Krafton, which experienced a 119.3% increase in net profit last year, views India as a pivotal market for sustained growth. While Battlegrounds Mobile India (BGMI) has been a major success, Krafton is eager to diversify its portfolio beyond BGMI and explore new opportunities in sports games.

The acquisition of Nautilus Mobile is part of Krafton's broader strategy to invest in India's gaming ecosystem. The company has invested over $200 million in the country, including stakes in gaming and adjacent sectors. Krafton's acquisition of Nautilus Mobile allows for deeper collaboration and innovation in game development, particularly in cricket games, which have significant potential not only in India but also in other cricket-loving nations.

Nautilus Mobile's partnership with JetSynthesys, a significant minority investor, will continue to focus on areas such as eSports and collaborations with cricket teams, including those in the Indian Premier League. Krafton's investment in Nautilus Mobile aligns with its vision to increase revenue, expand the user base, and improve retention. The acquisition also opens doors for new partnerships and collaborations in the gaming industry.

As Krafton continues to explore opportunities for acquisitions and investments in India, Nautilus Mobile will join the ranks of 14 other game studios operated by Krafton globally. This strategic acquisition positions Krafton as a key player in India's gaming market, poised to leverage its expertise and resources to drive innovation and growth.