KRAFTON India, the gaming giant behind BGMI, has increased its stake in Pune-based Nautilus Mobile to 75% by investing ₹118 Cr (around $13.7 Mn). This marks KRAFTON’s first controlling investment in an Indian gaming company. Nautilus, the creator of the Real Cricket franchise, has gained immense popularity with over 100 million downloads across its gaming titles. KRAFTON aims to leverage Nautilus’ expertise in cricket gaming to strengthen its presence in India’s fast-growing gaming sector. JetSynthesys, which acquired full ownership of Nautilus in 2020, will retain a minority stake and continue collaborating on esports ventures. This deal aligns with KRAFTON’s strategy to transform India into a global gaming hub and expand its portfolio in the mobile sports gaming segment. KRAFTON has already invested over $200 Mn in India and plans further investments of $150-$200 Mn.
1. Introduction to Nautilus Mobile
1.1 Company Overview
Nautilus Mobile is a Pune-based game development studio founded in 2013 by Anuj Mankar. The company specializes in mobile sports gaming, with a particular focus on cricket. Nautilus is best known for its highly successful Real Cricket series, which has become one of the most downloaded cricket gaming franchises in the world.
1.2 Business and Revenue Model
Nautilus Mobile operates on a freemium model, allowing users to download and play its games for free while offering in-app purchases and advertisements for monetization. With millions of active players, Real Cricket has built a strong revenue stream through microtransactions and premium content.
1.3 Founders and Their Background
Anuj Mankar, the founder of Nautilus, has extensive experience in mobile gaming. Under his leadership, the company has created an engaging gaming experience tailored for cricket enthusiasts worldwide. His vision to make Nautilus a global name in sports gaming has led to significant growth in the company.
1.4 Products and Services
Nautilus Mobile has launched several versions of Real Cricket, including Real Cricket 22 and Real Cricket 24, offering realistic gameplay and advanced graphics. The company also introduced Real Cricket GO, a lighter version designed for low-end mobile devices. These games have consistently ranked among the top cricket games on mobile app stores.
2. KRAFTON’s Investment Journey in Nautilus Mobile
2.1 Initial Stake in 2022
KRAFTON initially invested $5.4 Mn in Nautilus Mobile in 2022, acquiring a minority stake from JetSynthesys. This investment was aimed at strengthening KRAFTON’s position in the Indian gaming market and assessing potential long-term collaborations.
2.2 Recent Investment and Majority Stake Acquisition
KRAFTON India has now increased its stake to 75% by investing an additional ₹118 Cr. This makes it the majority shareholder, giving it greater control over Nautilus’ strategic direction and future development.
2.3 JetSynthesys’ Role Post-Acquisition
Despite KRAFTON’s controlling stake, JetSynthesys will continue to be a significant minority investor. It will collaborate with Nautilus Mobile, particularly in esports and game development.
3. KRAFTON’s Strategy and Vision for India
3.1 India as a Key Gaming Market
India has become one of the fastest-growing gaming markets, with the industry generating approximately $3.8 Bn in revenue in FY24. KRAFTON aims to capitalize on this growth by investing in local game studios and fostering an ecosystem for game development.
3.2 Expansion Plans and Future Investments
KRAFTON has already invested over $200 Mn in India and plans to invest an additional $150-$200 Mn. The company is focused on strategic acquisitions and minority investments in promising gaming startups, with the possibility of increasing stakes over time.
3.3 Other Indian Investments by KRAFTON
Apart from Nautilus, KRAFTON has invested in various Indian startups, including gaming firms like NODWIN Gaming and Loco, and non-gaming platforms such as Kuku FM and Pratilipi.
4. Impact of Acquisition on the Indian Gaming Ecosystem
4.1 Strengthening the Mobile Cricket Gaming Segment
With KRAFTON’s global resources and expertise, Nautilus Mobile will be able to enhance the Real Cricket franchise further. This acquisition is expected to improve game quality and reach a wider international audience.
4.2 Boosting Esports and Game Development in India
Nautilus’ development capabilities will allow KRAFTON to focus more on Indian gaming content. With JetSynthesys’ continued collaboration, esports and game publishing efforts will get a significant boost.
4.3 Encouraging More Foreign Investments
KRAFTON’s acquisition of a controlling stake in an Indian gaming company sets a precedent for more global gaming giants to invest in India’s booming gaming industry.
5. Learning for Startups and Entrepreneurs
5.1 The Importance of Strategic Investments
KRAFTON’s phased investment strategy highlights the benefits of initially acquiring minority stakes and then scaling up ownership based on synergies.
5.2 Leveraging Strong Intellectual Property (IP)
Nautilus’ success with the Real Cricket franchise underscores the value of developing strong gaming IPs that attract investor interest.
5.3 Building a Scalable Revenue Model
Freemium models with in-app purchases and ads have proven to be a lucrative business strategy in mobile gaming, as seen in Nautilus’ revenue approach.
5.4 Collaborations Drive Growth
Despite the acquisition, JetSynthesys remains a minority investor, proving that strategic partnerships can ensure continued innovation and market expansion.
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