In a significant move that underscores the growing global attraction to India’s vibrant startup ecosystem, KRAFTON India has emerged as the anchor investor in the newly launched IMM India Fund. This strategic partnership between the South Korean gaming powerhouse and IMM Investment, a prominent investment firm managing approximately $7 billion in assets, aims to propel growth-stage Indian startups across critical technology and consumer-focused sectors.
The collaborative initiative marks a pivotal moment for Indian entrepreneurship, particularly in technology hubs like Tamil Nadu, which has been rapidly emerging as a breeding ground for innovative startups. By committing around $170 million to Indian startups since 2021, KRAFTON demonstrates a robust commitment to nurturing local innovation and supporting emerging digital enterprises.
The IMM India Fund has strategically positioned itself to invest in high-potential sectors including consumer tech, Software-as-a-Service (SaaS), fintech, gaming, media, and deep technology. Its first investment in Vellvette Lifestyle, the parent company of Sugar Cosmetics, signals a clear intent to back companies with substantial growth potential and a trajectory toward potential initial public offerings (IPOs).
For the Tamil Nadu startup ecosystem, this development represents a significant opportunity. The state, which has been consistently ranked among India’s top startup destinations, stands to benefit from increased international visibility and targeted investments. Cities like Chennai have already established themselves as technology and innovation centers, hosting numerous successful startups and attracting global attention.
“Our partnership with IMM marks an exciting new chapter in fostering India’s startup ecosystem,” said Sean Hyunil Sohn, CEO of KRAFTON India. “By introducing South Korean capital, expertise, and global perspectives into the Indian market, we aim to help startups in critical sectors scale and thrive, ultimately strengthening India’s position on the world stage.”
Il Bu Joung, President of IMM Investment, further emphasized the long-term vision behind this collaboration: “For 25 years, IMM Investment has supported remarkable startups in South Korea. Our KRAFTON-IMM partnership in India will bring together deep expertise in creating a robust support system for emerging companies.”
The fund’s strategy extends beyond direct investments. KRAFTON India has also been actively supporting the startup ecosystem through initiatives like the KRAFTON India Gaming Incubator (KIGI), which provides funding, mentorship, and critical resources to game developers. This holistic approach demonstrates a commitment to not just financial investment but also ecosystem development.
Key statistics highlight the potential impact:
KRAFTON has already invested approximately $170 million in Indian startups, spanning esports, digital content platforms, and the creator economy. The company has also diversified its approach by investing in venture capital funds like 3one4 Capital and Lumikai, indicating a sophisticated, multi-pronged investment strategy.
The implications for Tamil Nadu are particularly promising. With a robust technology infrastructure, a strong educational ecosystem producing top-tier engineering talent, and a growing startup culture, the state is well-positioned to attract and benefit from such international investments. Startups in Chennai and other tech hubs could see increased opportunities for funding, mentorship, and global market access.
As the Indian government continues to promote initiatives like “Invest India” and foster international collaborations, partnerships like KRAFTON and IMM Investment’s fund represent a promising trend. They signal growing international confidence in India’s startup potential and offer a pathway for emerging entrepreneurs to access global resources and expertise.
