The latest private funding deal values the user-generated game platform at $29.5 billion. Roblox hasn't revealed yet when the direct listing offering (DPO) will take place.
Consumer spending in the Roblox mobile version more than doubled compared to 2019, breaking above $1 billion in global revenues. The company said its revenue skyrocketed 91% from a year earlier to $242.2 million.
Furthermore, Roblox was the highest-earning mobile gaming business in the United States during the Christmas holidays, generating $6.6 million in gross revenue, according to Sensor Tower.
A few weeks ago, the US Securities and Exchange Commission (SEC) gave permission to US companies to secure funding through direct listings. As a result, Roblox’s shareholders will be able to float the shares on an exchange without having to recruit investment banking companies to underwrite the transaction.
Direct listings can, therefore, avoid costly underwriters and companies that go public via DPO, and evade other restrictions including lockup periods.
Roblox sold its stock at $45 per share in the Series H funding round to Altimeter Capital and Dragoneer Investment Group. Roblox plans to use these funds for their business to expand and create a “human co-experience platform that enables shared experiences among billions of users.”
“We’re thrilled to welcome Altimeter, Dragoneer and the other new investors,” said Roblox’s chief executive David Baszucki.
“We look forward to working with all of them as we continue our mission to build a human co-experience platform that enables shared experience, from play to work, and learning among billions of users.”
The company said it has previously filed a confidential draft registration statement with the SEC for a traditional initial public offering (IPO). The online game platform secured $150 million last year through venture funding from a prominent entrepreneur Andreessen Horowitz.
Mobile app store intelligence firm Sensor Tower said Roblox has been downloaded 159.6 million times worldwide across the App Store and Google Play in 2020, 43% more than 111.4 million installs in 2019.
Startup Savant reported in October that the global digital gaming business is set to soar to $264.9 billion by 2023, paving the way for the emerging gaming startups to attract new funding.
Roblox has recorded another fundraising success as it raised $520 million in the new funding round that values the online gaming platform at $29.5 billion. The company is expected to go public via direct listing.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.