South Korea's IMM Investment Has Secured an Anchor Investor for its Inaugural India Fund

Nitin Konde, Varun Bhardwaj

Oct 31, 2024 — 3 min read

South Korea's IMM Investment Finds Anchor Investor for India Entry

The massive South Korean gaming company Krafton hopes to increase its presence in India by assisting domestic investors in taking advantage of the country's developing startup scene. The first of these investors is IMM Investment, a multi-asset investment company established in South Korea that manages assets under management (AUM) of around $7 billion in three segments: infrastructure, growth equity, and venture capital. In addition to Korean unicorn businesses Woowa Bros, Bucketplace, Musinsa, and Krafton itself, which is listed on the Korea Exchange, its portfolio also includes NYSE-listed Coupang.

Krafton and IMM Investment's Partnership

IMM Investment and Krafton's India division announced on October 29 that Krafton would be the anchor investor in IMM's first India fund. However, the business didn't reveal any particulars.

An exciting new chapter in the company's efforts to support India's startup ecosystem has begun with Krafton India's collaboration with IMM. According to Sean Hyunil Sohn, CEO of Krafton India, the company hopes to assist entrepreneurs in vital industries in growing and succeeding by bringing more South Korean capital, knowledge, and international viewpoints to the Indian market. This would ultimately improve India's standing on the international scene.

Additionally, he noted that this partnership supports the government's Invest India drive, improves investor connections between South Korea and India, and speeds up the expansion of Indian businesses.

Investment Plans

The IMM India Fund will support entrepreneurs in industries like DeepTech, Software-as-a-Service (SaaS), Fintech, Gaming and Media, and Consumer Brands. Its primary focus will be on growth-stage businesses that exhibit significant IPO potential and stand to gain from connections to South Korean money and experience.

It has made its initial investment in Sugar Cosmetics, a beauty and personal care brand based in Mumbai that was established in 2015 by Vineeta Singh (Shark Tank India fame) and her spouse Kaushik Mukherjee.

IMM Investment's current India investment lead, Prakhar Khanduja, disclosed that the fund had made a secondary investment of $3 million in Sugar Cosmetics. According to Khanduja, the fund closed for the first time in December of last year and would incorporate funds from the parent fund as well as several other limited partners (LPs). He did not, however, provide precise information about the fund's size. By the end of the year, the fund intends to close another investment, he added.

"For the upcoming year, secondary investments will be our primary focus. The secondary market contains some excellent assets. We'll go primary as well if there's a primary (investment opportunity) available," Khanduja stated. According to Khanduja, the IMM India Fund would only support entrepreneurs and business plans that are either profitable, at least operationally, or approaching profitability.

If a business is successful or on the verge of becoming so, the public market will at least experience some kind of liquidity event within the next three years. "Every time we enter a new market, we have focused on it, and we will continue to do so in India," he said.