South Korean gaming giant Krafton has acquired a majority stake in Indian gaming studio Nautilus Mobile for $14 million in an all-cash deal, marking a significant expansion of its presence in the Indian gaming market. The acquisition gives Krafton a "north of 75% stake" in Nautilus, which will continue to operate independently with its 45 employees remaining on the payroll.

Nautilus Mobile, founded in 2013, is best known for its Real Cricket franchise, which has garnered millions of downloads and has five titles, including Real Cricket 24 and Real Cricket Premier League. The studio's focus on cricket games aligns with Krafton's strategy to tap into the massive cricket-loving audience in India, where mobile gaming is a rapidly growing market.

According to Sean Hyunil Sohn, CEO at Krafton India, the acquisition aims to strengthen Nautilus's "core competence" in mobile cricket games, refining existing titles in the short term and exploring new genres in the long term. Nautilus CEO Anuj Mankar echoed this sentiment, stating that the deal will enable the studio to build more games and genres for both the Indian and global markets.

The Indian mobile gaming market is poised for significant growth, with market intelligence firm Niko Partners estimating that revenue will increase from $640 million in 2023 to $1.1 billion by 2028. Mobile games dominate the country's overall gaming industry, accounting for 77.9% of total revenue. Krafton, which saw a 119.3% year-over-year growth in its net profit last year, views India as a key market to continue its success.

The deal marks a significant milestone for Krafton, which has invested over $200 million in India, excluding the Nautilus Mobile acquisition. The company has been actively expanding its presence in the country, with investments in gaming and gaming-adjacent companies, as well as startups and funds. Krafton operates 14 game studios globally, and Nautilus will join this network.

Krafton's acquisition of Nautilus Mobile is also seen as a strategic move to diversify its portfolio beyond its flagship title, Battlegrounds Mobile India (BGMI), which has been a huge success in the Indian market. The company aims to explore new avenues of success, including cricket and other sports games, to attract new gamers.

In 2020, Indian digital entertainment and technology company JetSynthesys acquired a 100% stake in Nautilus Mobile, followed by Krafton's strategic investment of $5.4 million in 2022. JetSynthesys will remain a "significant minority" investor in Nautilus Mobile and will continue to work with the studio on areas, including eSports.

Krafton's corporate lead development, Nihansh Bhat, stated that the company will measure the deal's success post-completion by looking at increased revenue, user base, retention, and new deals. The acquisition is expected to close by the end of the month, and Krafton plans to expand Nautilus' presence to other geographies over time.

With this acquisition, Krafton solidifies its position as a major player in the Indian gaming market, and its commitment to investing in the country's gaming ecosystem. As the Indian gaming industry continues to grow, this deal is likely to have significant implications for the market and its players.