Krafton says India profitability less, but growth opportunity huge
Krafton
's average revenue per user from paying users of its cash-cow
Battlegrounds Mobile India
, among India's most popular mobile games, is less than a third of the global average, a top company executive said.
The South Korean video game publisher's India chief executive,
Sean Hyunil Sohn
, told ET that while India is not as profitable as global markets for the company, Krafton generates sizable revenue from the country compared with other global gaming companies operating in the market. The market is also growing and there is a lot of headroom for growth, he said.
The company is now tapping into the growing base of competitive gaming in India to accelerate growth. Krafton is developing an IPL-style eSports franchise league to provide a more stable and consistent format for competitive gaming.
According to a Ficci-EY report on the gaming sector released in March 2025, Krafton's BGMI, followed by Garena's Free Fire were the top grossing games of 2024.
To spur in-app purchases, and boost revenue, the company lowered the minimum purchase amount for India to about a tenth of the global minimum. The strategy has significantly increased the paying user ratio, as initial small purchases often led to subsequent larger ones, Sohn said.
'India is still less than one-third of the global average in terms of average revenue per paying user. If we look at the average revenue per daily active user including non-paying users, I think it can go down even further because India generally has a lower paying user ratio,' Sohn told ET.
The game, however, has remained among the top three in terms of downloads in India, according to Sensor Tower, a provider of data on the digital market. Sohn attributed the performance to Krafton's consistent content reinforcement, such as by adding new content on a bi-weekly cycle and collaborating with global brands, Indian celebrities and events, which he claimed sets the game apart from its competition.
Sohn said the IPL-style eSports format is still in the works, with plans expected to be finalised by the second half of the year. The new franchise league will establish formal and legal business obligations and rights between multiple parties, with the aim to attract investors willing to make significant investments in the ecosystem.
'Our eSports structure has been in place for the last three years, but it lacked strict guidelines for team operations and sponsorships. There were a lot of requests from industry peers for a more consistent offering where we can regulate the growth of eSports in a more structured manner. We are now in the stage of getting formal feedback from potential bidders and participants in this league,' Sohn said.
'Maybe in one or two months we will be able to announce how we are proceeding with a more detailed and structured plan,' he added.
The executive said the league will help boost revenue across the sector, with revenue-sharing agreements being finalised among stakeholders. 'The general principle is that all participants in the ecosystem will share both financial and operational burdens and share the commercial upsides in a fair manner,' Sohn said.
BGMI was born out of a tumultuous period for Krafton.
PUBG
Mobile, the original title, was among the list of games and apps banned by the Indian government in 2020 after an armed conflict between China and India, following fears of sensitive data getting across the border. After a prolonged absence, Krafton localised the game for the India market, launching it as BGMI.
Four years down the line, the perception of the game has shifted to being positive and is now recognised as mainstream entertainment that provides career opportunities.
'The initial controversies surrounding BGMI's launch, including concerns about data privacy, is a natural phase of gaming becoming mainstream in any country. But gaming apps generally collect less sensitive information compared to social media platforms,' Sohn said.
The Indian government now officially encourages and promotes the gaming industry, viewing it as a significant opportunity for quality jobs, GDP growth and export of services, he said. 'Interactions with the government are now more focused on future opportunities, productive industry growth, and talent pool development.'
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