Scopely, the Los Angeles-based leader in mobile gaming, has secured $340 million in its most recent funding round, a substantial investment likely representing its final capital raise before a potential public offering.

Despite the ongoing global health crisis, prominent investment firms including Wellington Management, TSG Consumer Partners, CPP Investments, and BlackRock funds have contributed significantly to the gaming company, building on a previous $200 million late-stage funding round completed just a year prior.

“We’re observing considerable interest from public market investors in the interactive entertainment sector,” explained Walter Driver, Scopely’s co-chief executive. “We were pleased to participate and support Scopely’s continued growth.”

This latest funding, which values the company at $3.3 billion according to sources familiar with the deal, includes participation from NewView Capital, Battery Ventures, Greycroft, Revolution Growth, and Highland Capital Partners.

According to Driver, this significant influx of capital will not alter Scopely’s core strategy, which centers on both organic expansion and the acquisition of prominent mobile gaming studios, while maintaining its already strong profitability.

Scopely distinguishes itself from other major players in the gaming industry, such as Epic Games and Unity, by concentrating solely on game development and the player experience, rather than providing tools for game creation. The company’s primary focus remains on the games themselves and the substantial revenue generated by its player base.

“Scopely is dedicated to developing comprehensive publishing and development capabilities that will foster enduring relationships with players for years to come,” Driver stated. “This industry is rapidly changing, and we’ve experienced exponential growth. To maintain our position as a leading company, we must be capitalized accordingly.”

In terms of financial backing, no other mobile gaming studio currently approaches Scopely’s level. The company’s closest competitor in both strategy and location is likely Jam City, another mobile gaming company based in Los Angeles. *

While Scopely is actively developing platform technologies similar to those that have driven the success of Epic and Unity, it does not intend to sell these tools to other companies, Driver clarified.

“We believe that, in the long run, the most successful companies in this space will be fully integrated and possess proprietary technology platforms,” he explained.  

For Scopely, technological advancements are primarily focused on enhancing user engagement and developing the publishing and development capabilities necessary to keep its games appealing to an increasingly sophisticated and expanding audience.

The company is also looking ahead, exploring the possibility of greater cross-platform compatibility, allowing players to seamlessly transition between desktop, mobile, and console versions of its games. While augmented or virtual reality development is not currently a priority, Driver did not dismiss the possibility for the future.

“We anticipate continued innovation in game genres and consumer experiences, along with increased convergence and interaction between platforms. Scopely will prioritize a player-focused approach rather than being limited by specific devices,” Driver said. 

Driver, along with his co-chief executive Javier Ferreira, views Scopely’s growth – and the broader gaming industry’s expansion – as a reflection of evolving consumer entertainment preferences.

Scopely’s players dedicate an average of 80 minutes each day to games such as “Star Trek Fleet Command,” “MARVEL Strike Force,” “Scrabble GO” and “YAHTZEE with Buddies,” and this time is largely spent in social interaction.

“Both players and investors recognize the value of the connections fostered through interactive experiences. It’s not just our relationship with the players, but also the relationships they build with one another,” Driver said. “Unlike most passive media, our games provide a sense of identity and community.”

Or, as Dan Sundheim, co-founder of D1 Capital, a late-stage Scopely investor, succinctly put it: “We believe mobile gaming’s rapid growth positions it as one of the most attractive investment opportunities in entertainment. We are confident that Scopely’s vision, combined with its strategic approach to building a vertically integrated game-making ecosystem, a unique technology platform, and strong player relationships, will solidify its position as an industry leader.”

 *A previous iteration of this article contained an inaccurate valuation for Jam City, which was stated as $1.1 billion. The company has not recently made its valuation public.