Leeds-based games studio and VR developer, XR Games, has secured £5.9m in new investment, in a round led by existing investors act media ventures, Praetura Ventures and Maven.
The funds will support XR Games as it moves to a new studio in central Leeds later this year and grows its team and invests in intellectual property, the development of new games, and research into VR and augmented reality (AR) technologies, following the success of its Zombieland: Headshot Fever launch in 2021.
XR Games initially raised £1m in a round led by act media ventures (formerly ACT Capital Partners), and subsequently raised £1.5m in a round led by Praetura Ventures alongside act media ventures in 2019. It raised a further £1.5m in 2021 as part of an investment round led by Maven utilising both Maven-managed VCT Funds and NPIF – Maven Equity Finance, which is part of the Northern Powerhouse Investment Fund (“NPIF”), with backing from act media ventures (formerly known as ACT Capital Partners).
Since the 2021 investment round, XR Games has tripled its headcount to employ more than 85 people. In March, it acquired specialist VR game studio Fierce Kaiju. The expansion has allowed the company to take on larger projects, and revenues at the business grew tenfold last year.
XR Games works with major partners and internationally-renowned brands, including Sony Pictures VR and Rovio Entertainment, to create games for the rapidly-growing VR and AR market. The global industry saw sales of $21.8bn last year and is forecasted to grow to $84bn in 2028. Three members of the XR team have been shortlisted for the Game Dev Heroes Awards, which take place in Brighton later this month.
Bobby Thandi, XR Games founder and CEO, said: “This latest investment will enable XR Games to continue to bring new innovations to the sector over the next few years. Our new Leeds studio will allow us to continue to grow our team, and the number of projects we’re working on. We’ll continue to push XR Games to the forefront of the new virtual reality revolution we are seeing in the creative industries.”
