User-generated game platform Roblox has raised $520 million in a new round of funding, and it will still go public through a direct listing where the company’s existing shareholders directly sell shares to investors. The private funding deal values Roblox at $29.5 billion.
Roblox Corporation (“Roblox”) announced that it plans to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for a proposed direct listing of its Class A common stock. The number of shares of Class A common stock to be offered by the Company’s stockholders has not yet been determined. Roblox intends to commence the direct listing following completion of the SEC review process, subject to market and other conditions.
According to BBC, the company said it will use the fresh funds to build its community and become more of a social platform.
Roblox was first released in 2006, but has seen dramatic growth during the Covid-19 pandemic as children who were forced to stay home spent more time playing games.
Its revenue jumped 91 per cent from a year earlier to $242.2m, Roblox said in its prospectus. Roblox games, which allows users to create avatars across different titles, are free to play but the company sells digital currency called Robux that can buy virtual goods and enhance characters.