After having filed to go public last year, the gaming company Roblox appears to still be tapping the private markets for funding and has announced that it’s raised $520 million in new funding at a share price that places its valuation at $29.5 billion. 

The new round was led by the investment firms Altimeter Capital and Dragoneer Investment Group, with participation from the likes of Warner Music Group and the Investment Group of Santa Barbara.

With the funding raised, Roblox says that it’ll now hold a direct listing on the public markets and won’t raise any further funding from its public market debut. 

Roblox’s new funding round seems to be a very strategic play, given that last year, the company postponed its planned public listing to adjust its pricing strategy after seeing massive first-day pops of companies like Airbnb and DoorDash. 

Now, the $520 million investment at a roughly $30 billion valuation represents the amount of money that Roblox would have raised on the public markets and a very favorable valuation for the company, leaving no surprise that it’ll now hold a public listing and let the market run its course regarding its share pricing.

Before the just-announced funding, Roblox was valued at $4 billion from its last private round. Now, that valuation has soared over 7x and given Roblox a market value that’s on par with that of several gaming giants.

Roblox is a gaming platform targeted at kids, wherein people can play games or create games themselves for others to play. The company has a strong business that generated $488 million in revenue in its most recent fiscal year but with a net loss of $86 million in that same period.

Photo: Roblox CEO David Baszucki by Fortune Conferences is licensed under CC BY-NC-ND 2.0

Related;

• A Peek Into Roblox’s Financials
• Roblox Files To Go Public
• Roblox Buys Loom.ai

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