Esports betting company Rivalry has announced a private placement financing resulting in proceeds of up to CAD $10 million (~£5.8m).
Led by bookmaker Pinnacle, the financing round will enable Rivalry to accelerate its growth opportunities and operational goals.
The financing round will look to generate the funds through the issuance of 6.6 million voting shares in Rivalry’s capital priced at CAD $1.50 (~£0.88) per share. The share price is expected to close on May 5th subject to regulatory approval.
According to a release, the financing round follows two years of ‘record-breaking results’ regarding revenue growth. In November 2022, Rivalry announced October was its first-ever profitable month and consolidates its position in the esports betting industry.
Aside from improving financial forecasts, Rivalry continues to expand its offerings and partnership portfolio. In March, it strengthened its existing partnership with Australian esports organisation Grayhound Gaming and in December, it entered Dota 2 alongside Filipino esports organisation Blacklist International.
Esports betting continues to grow at an impressive rate. In August 2022, betting odds provider Oddin.gg raised $4.5m (~£3.6m) in a Series A financing round.
Rivalry also released results for Q4 of 2022, and with it, full-year financial results for 2022, as well as preliminary results for Q1 2023 on Wednesday. The company saw revenue increase by 140% and gross profit by 349% year-on-year for the financial year 2022. It also achieved “all-time-high quarterly revenue” for Q1 2023 with revenue of CAD $12m — up 151% year-on-year, according to a release.
Steven Salz, Co-founder and CEO of Rivalry, spoke on the news: The terms and strategic value of the stakeholders participating in this round represent a vote of confidence in our one-of-a-kind team, market strategy, and unique ability to execute within this emerging vertical.
“We are growing rapidly with a successful strategy in place and talented team behind us, and with this funding we anticipate both continuing our pace of growth and our trend toward profitability.”