The Indian arm of gaming firm Krafton has invested in IMM Investment's first India fund as an anchor limited partner.

Seoul-based IMM Investment, which has backed some of South Korea's unicorns early, has made the first close of the India fund and hired former Legend Capital partner Prakhar Khanduja to run it.

According to Nihansh Bhat, head of corporate development for Krafton India, such an investment by IMM will allow the gaming company to enter newer business categories and sectors. He said the firm will continue seeking opportunities like this in the country.

Krafton is making its third venture firm investment in India after making investments in 3one4 Capital and Lumikai. The company has thus far invested more than $170 million in the country and has allocated another $150 million for future investments.

Khanduja said IMM Investment India will focus on backing startups at the Series A stage or later, operating in sectors like consumer, tech, SaaS, fintech, gaming, media and deep tech. The Indian unit's first investment was in Sugar, a leading cosmetics brand.