Gaming Studio Secures $42.7 Million to Boost Mobile RPG Development and AI Research

An american gaming studio, Azra Games, has secured $42.7 million in a recent funding round aimed at enhancing its mobile RPG development.

This Series A round was led by Pantera Capital, with notable contributions from a16z Crypto, a16z Games, and NFX. Overall, Azra has raised $68.3 million since its inception.

Mark Otero, the studio’s founder and a former co-founder of KlickNation, is driving the initiative. KlickNation, known for titles like Superhero City, was sold to Electronic Arts in 2011 for $35 million. Otero’s later work included the successful Star Wars Galaxy of Heroes, which generated over $32.5 million in revenue by May 2024.

In a blog post, Otero reflected on his return to game design, sparked by interest in blockchain technology. Azra Games is developing a free-to-play mobile RPG, targeting a new generation of Western audiences.

The funding will also bolster research efforts at Azra Labs, where CTO Travis Boudreaux is exploring AI technologies to streamline the creation of high-quality mobile content.

Despite the challenges faced by gaming studios during the recent crypto downturn, venture capital interest in the sector is resurging. For instance, a16z recently allocated $30 million for investments in gaming, focusing on areas such as AI, VR/AR, and Web3 games.

According to Cognitive Market Research, the RPG market was valued at $18.73 billion in 2021 and is expected to grow to $38.46 billion by 2029.