Krafton, South Korea’s gaming big recognized for titles together with PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has acquired a controlling stake in 12-year-old Indian gaming studio Nautilus Mobile for $14 million in an all-cash deal.
On Friday, the South Korean gaming firm confirmed to TechCrunch that it has acquired a “north of 75% stake” in Nautilus, the gaming studio in style for its cricket enthusiast-focused Actual Cricket franchise.
The Pune-based studio will proceed to function independently after the deal, which is anticipated to shut by the tip of the month, with all its 45 workers remaining on Nautilus’s payroll, Krafton advised TechCrunch.
Based in 2013, Nautilus has garnered tens of millions of downloads for its Actual Cricket franchise, which presently has 5 titles, together with Actual Cricket 24 and Actual Cricket Premier League.
Krafton goals to strengthen Nautilus’s “core competence” in cell cricket video games — the place demand is excessive in cricket-loving India — by refining its present titles within the brief time period and exploring new genres in the long run, Sean Hyunil Sohn, CEO at Krafton India, stated in an interview.
“Our growth functionality in Nautilus will assist Krafton double down on its India gaming technique, and collectively, we will in all probability construct extra video games, extra genres, each for the Indian market and world market going ahead,” Nautilus CEO Anuj Mankar advised TechCrunch.
The corporate plans to increase Nautilus’ presence to different geographies over time.
India’s cell gaming market is rising steadily, pushed by a big base of younger smartphone customers. Cell video games dominate the nation’s general gaming business by spending, accounting for 77.9% of total revenue, per market intelligence agency Niko Companions. The agency additionally estimates that the nation’s cell gaming income will develop from $640 million in 2023 to $1.1 billion by 2028.
Krafton, which noticed 119.3% year-over-year growth in its internet revenue final 12 months to roughly $889 million (KRW 1.3 trillion), sees India as a promising and key market to proceed its success. Nevertheless, a lot of the development from India has to this point come from its flagship title for the native viewers, Battlegrounds Cell India (BGMI), which hit its highest-ever gross sales final 12 months and surpassed 200 million downloads.
The corporate has different titles, together with Bullet Echo India, Highway To Valor, and CookieRun. Nevertheless, they haven’t but helped repeat the success story of the battle royale sport, a localized model of PUBG.
The deal may assist Krafton transfer past BGMI and discover new avenues of success, together with cricket and different sports activities video games, to draw new avid gamers.
In 2020, Indian digital leisure and know-how firm JetSynthesys acquired a 100% stake in Nautilus Cell. That was adopted by Krafton’s strategic investment of $5.4 million in 2022.
Sohn advised TechCrunch that whereas Nautilus’ potential was the rationale for the preliminary funding, Krafton discovered its function as a minority stakeholder limiting when it comes to supporting the studio’s content material growth. Gaining a controlling stake, he stated, would enable for deeper collaboration and higher involvement in core growth efforts with Nautilus.
“We strongly consider that cricket video games have loads of potential. And we wish to work with Nautilus to make the perfect effort attainable to essentially notice the potential of this market, not simply in India, however in different cricket-playing nations and different nations, which have gotten extra lively in cricket,” stated Nihansh Bhat, company lead growth at Krafton India, advised TechCrunch.
JetSynthesys will stay a “vital minority” investor in Nautilus Cell and can proceed to work with the studio on areas, together with eSports. The corporate has already labored with the studio to assist associate its Actual Cricket sport with cricket groups, together with these associated with the Indian Premier League, the world’s most profitable cricket match in India.
“We are going to, over a protracted time period, wish to have a look at, after all, elevated income, elevated consumer base, improved retention, all the standard issues, and hopefully new offers as nicely,” Bhat stated on the query of how Krafton would measure the deal’s success put up its completion.
Till now, Krafton has invested over $200 million in India, excluding the Nautilus Cell.
Krafton’s 20% investments in India have been in gaming and gaming-adjacent corporations, although the corporate additionally invested in Indian startups, together with the funds platform Cashfree, audio platform Kuku FM, and influencer advertising platform One Impression. It additionally backed funds, together with gaming-focused Lumikai and IMM Investment’s first India fund.
“We’re wanting on the alternative for acquisitions, reasonable investments, and even enterprise collaboration with notable gamers within the nation,” Sohn stated.
Nautilus will be a part of the 14 different sport studios Krafton operates in markets around the globe.