PUBG, BGMI maker Krafton buys 75% stake in Nautilus Mobile to boost India gaming strategy
Confirming the acquisition, Krafton stated that it has secured "north of 75% stake" in Nautilus, a Pune-based gaming studio renowned for its cricket-focused Real Cricket franchise.
FollowSouth Korean gaming giant Krafton, known for popular titles such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has acquired a controlling stake in Indian gaming studio Nautilus Mobile for $14 million in an all-cash deal. The move aims to strengthen Krafton's presence in India's booming mobile gaming market.
Confirming the acquisition, Krafton stated that it has secured "north of 75% stake" in Nautilus, a Pune-based gaming studio renowned for its cricket-focused Real Cricket franchise. Despite the acquisition, Nautilus will continue operating independently with its 45 employees remaining on board, according to Krafton. The deal is expected to be finalised by the end of the month.
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Nautilus, founded in 2013, has made a significant impact in India's mobile gaming industry, with its Real Cricket series garnering millions of downloads. The franchise includes titles such as Real Cricket 24 and Real Cricket Premier League, making it a key player in cricket-based gaming.
Krafton's India Strategy
Krafton India CEO Sean Hyunil Sohn said that the acquisition aligns with Krafton's long-term plans to expand in the Indian gaming space. In the short term, the company aims to refine Nautilus's existing cricket games while also exploring new gaming genres.
"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," Nautilus CEO Anuj Mankar said.
India's mobile gaming sector is witnessing rapid growth, driven by a vast base of young smartphone users. Market intelligence firm Niko Partners estimates that mobile games account for nearly 78% of the country's gaming revenue, which is projected to grow from $640 million in 2023 to $1.1 billion by 2028.
Krafton, which recorded a 119.3% year-over-year increase in net profit to approximately $889 million in 2023, sees India as a crucial market for future growth. While BGMI has been the company's flagship success in India—crossing 200 million downloads and achieving record sales last year—Krafton is looking to diversify beyond battle royale games.
Apart from BGMI, Krafton has launched other titles like Bullet Echo India, Road to Valor, and CookieRun. However, these games have yet to replicate BGMI's success. The acquisition of Nautilus Mobile is expected to provide a fresh avenue for growth, particularly in cricket and sports gaming genres.
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Nautilus Mobile's Journey and Future Collaboration
Previously, Indian digital entertainment firm JetSynthesys had acquired a 100% stake in Nautilus Mobile in 2020. Two years later, Krafton made a strategic investment of $5.4 million in the company.
Krafton's corporate lead development executive Nihansh Bhat noted that while Nautilus' potential was evident from the outset, holding only a minority stake limited Krafton's ability to contribute to content development. By securing a controlling stake, Krafton can now actively collaborate on game development and innovation.
"We strongly believe that cricket games have a lot of potential. And we want to work with Nautilus to make the best effort possible to really realize the potential of this market, not just in India, but in other cricket-playing nations," Bhat said.
While JetSynthesys will retain a minority stake in Nautilus, it will continue its collaboration with the studio, particularly in eSports. The company has previously partnered Nautilus' Real Cricket game with IPL teams, tapping into India’s cricket-crazy audience.
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