Krafton acquires controlling stake in Indian gaming studio Nautilus Mobile for $14M

Krafton, a gaming giant based in South Korea known for popular titles such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has acquired a controlling stake in the 12-year-old Indian gaming studio Nautilus Mobile for $14 million in an all-cash deal.

Confirmed on Friday by the South Korean gaming company to DailyTech, the acquisition includes a “north of 75% stake” in Nautilus, a Pune-based gaming studio renowned for its Real Cricket franchise that caters to cricket enthusiasts.

Despite the acquisition, Nautilus Mobile will continue to operate independently with its 45 employees remaining on the company’s payroll. The deal is expected to be finalized by the end of the month.

Established in 2013, Nautilus has achieved millions of downloads for its Real Cricket franchise, which currently consists of five titles, including Real Cricket 24 and Real Cricket Premier League.

Krafton’s focus is to enhance Nautilus’s expertise in mobile cricket games, especially in the cricket-loving Indian market. This will involve refining existing titles in the short term and exploring new genres in the long term, according to Sean Hyunil Sohn, CEO at Krafton India, in an interview.

Nautilus CEO Anuj Mankar expressed optimism about the collaboration, stating that it will enable the companies to develop more games across various genres for both the Indian and global markets.

Krafton’s strategic move to acquire Nautilus aims to expand the studio’s presence in other markets over time, leveraging the growing mobile gaming market in India. With a large base of young smartphone users, mobile games account for the majority of the country’s gaming revenue, set to increase significantly in the coming years.

While India remains a key market for Krafton’s success, the company sees potential in diversifying beyond its flagship title, Battlegrounds Mobile India (BGMI), to explore new opportunities in cricket and other sports games to attract a wider audience.

The acquisition marks a strategic shift for Krafton, allowing deeper collaboration with Nautilus to drive content development efforts and unlock the full potential of the cricket gaming market.

Prior to Krafton’s acquisition, Indian company JetSynthesys had acquired a 100% stake in Nautilus Mobile in 2020, followed by Krafton’s strategic investment of $5.4 million in 2022.

The decision to acquire a controlling stake in Nautilus was driven by Krafton’s desire to enhance collaboration and support the studio’s content development efforts. This move aligns with Krafton’s vision to tap into the potential of cricket games not just in India but also in other cricket-playing nations worldwide.

JetSynthesys will maintain a “significant minority” stake in Nautilus Mobile, focusing on areas such as eSports and partnerships with cricket teams, including those associated with the Indian Premier League.

Looking ahead, Krafton aims to measure the success of the deal by factors such as increased revenue, user base growth, improved retention, and potential new partnerships.

Apart from the Nautilus Mobile acquisition, Krafton has invested over $200 million in India, primarily in gaming and gaming-adjacent companies, as well as other startups and funds.

With a portfolio of 14 game studios worldwide, Nautilus will join Krafton in its mission to explore new avenues of success in the gaming industry.