Metaverse unicorn Improbable has posted its first year of profit since launching over a decade ago, netting £11m after tax in 2023.
Improbable, which builds the underlying technology for various metaverse ventures in gaming, entertainment and more, posted a revenue bump of 37%, reaching £66m for the year ended December 2023.
Founded in 2012, Improbable grew rapidly, raising more than $50m (£39m) in its first three years.
The company secured unicorn status of more than $1bn in 2017 following its $502m Series B round featuring Andreesen Horowitz, SoftBank, LocalGlobe and Horizons Ventures.
The explosion of investor interest in the metaverse at the end of 2021 further galvanised Improbable’s fundraising efforts. The firm secured an additional $262m and a $3.4bn valuation by the end of 2022.
Scaling its metaverse technology proved to be expensive work, however, with the company consistently posting losses, including a loss of £117.5m in 2020 and £149m in 2021.
The company narrowed losses considerably for 2022, conducting significant job cuts as it reassessed the various elements of its business.
Last year, the company shifted its focus to venture building – developing core metaverse, AI and blockchain technologies and creating businesses based on them.
Co-founder and CEO Herman Narula said the move has “proven to be the optimal model” for the company and the metaverse in general.
“Through strategic investments in both large partnerships and startups, we continue to advance the case for the metaverse,” Narula said.
“Our ambition is to shape the future, and our experience provides us with unique insights to do so.”
In 2023, Improbable sold its game services subsidiary to Keywords Studios for £76.5m and its defence division to an investment group led by NOIA Capital for an undisclosed sum.
The company said it aims to launch multiple new startups in 2024 and 2025 as part of its venture-building model.
In a recent interview with UKTN, Narula said his meetings with Labour’s top team have given him optimism that the new government can be both “pro-business” and build an “economy that works for people”.
Listen: Improbable’s Herman Narula on why the metaverse is far from dead
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