South Korea-based IMM Investment, which has close to $7 billion in assets under management, has roped in an anchor investor for its maiden India-dedicated investment vehicle.
The fund, which will invest in sectors such as consumer brands, consumer tech, SaaS, fintech, gaming, media, and deeptech, has onboarded South Korean gaming company Krafton, Inc., as its anchor investor.
IMM Investment’s India fund will primarily target growth-stage companies that demonstrate a clear path to an IPO, supporting their growth and expansion, Krafton said in a LinkedIn post on Tuesday.
Krafton, however, didn't disclose the financial details of its investment in IMM.
“This collaboration aligns with the Government’s Invest India initiative and strengthens the investor relations between India and South Korea while accelerating growth for Indian startups,” said Krafton's chief executive officer, Sean Hyunil Sohn.
To be sure, Krafton, last year, has earmarked an additional $150 million to invest in Indian companies over the next two to three years.
Its India’s investment strategy includes a fund-of-funds (FOF) approach, and it has already invested in homegrown venture capital funds such as 3one4 Capital and Lumikai. The company has also made direct investments in Indian entertainment and gaming startups like Kuku FM, Nodwin Gaming, One Impression, Loco, and Nautilus Mobile.
Meanwhile, IMM Investments, which invests across three primary strategies – venture capital, growth equity, and infrastructure, is an investor in companies such as NYSE-listed Coupang, Woowa Bros, Bucketplace, and Musinsa. It is an investor in Krafton itself.
The company, which was founded in September 1999, has 23 private equity funds and 25 venture capital funds under management. In India, the fund has already made its maiden investment in beauty and personal care brand Sugar Cosmetics. It invested $3 million in the company, as per media reports.
The India fund reportedly made its first close in December last year. It will raise capital from multiple other limited partners, besides the capital it has received from the parent investment firm.