Azra Games secures $42.7M to develop blockchain-based RPGs

Azra Games, a gaming studio based in Sacramento, raised $42.7 million in a Series A funding round to support the development of blockchain-based mobile role-playing games (RPGs). 

The funding was led by Pantera Capital, with participation from a16z Crypto, a16z Games, and NFX. 

To date, the company has raised $68.3 million across pre-seed, seed, and Series A rounds.

The studio, founded by game designer Mark Otero, focuses on integrating Web3 elements into traditional RPG gameplay. 

Otero, who previously co-founded KlickNation, returned to game development after exploring blockchain technology. 

KlickNation, known for titles like Superhero City and Age of Champions, was acquired by Electronic Arts in 2011. 

At EA, Otero helped develop Star Wars Galaxy of Heroes, which generated over $32.5 million in revenue as of May 2024.

Azra Games plans to use the funds to accelerate game development and support its research team at Azra Labs. 

The team, led by co-founder and chief technology officer Travis Boudreaux, is exploring artificial intelligence to streamline the production of high-quality mobile games. 

The studio aims to introduce a new generation of RPGs that incorporate blockchain features to enhance gameplay.

Despite challenges in the blockchain gaming sector, venture capital interest remains strong. 

Azra's funding aligns with recent investments by firms like a16z, which announced $30 million for startups focused on AI, VR/AR, and Web3 games. 

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