Sorare Secures Additional Funding to Drive Profitability by 2027
Written with artificial intelligence.
Sorare has secured tens of millions of euros from existing investors to support its strategic growth, aiming for profitability by the end of 2027. The company's new free-to-play Arcade mode is central to this plan, even as it faces legal challenges related to alleged unlicensed gambling activities.
Funding and Growth Plans
On September 3, Sorare confirmed it has raised additional capital from its current investors, including Benchmark, Accel, Partech, and Kibo Ventures. Co-founders Nicolas Julia and Adrien Montfort also participated in this funding round, which amounts to tens of millions of euros. While the initial funding tranche has been closed, further investments are anticipated. The company has not disclosed its current valuation.
Sorare reported an impressive 85% increase in net revenue year-on-year for the first half of 2026, with over 100,000 users purchasing cards. The company is now shifting its focus to achieving profitability by the end of 2027, extending the timeline from its previous target of late 2025.
Arcade Mode and Revenue Projections
Central to Sorare's growth strategy is the launch of Arcade, a free-to-play mode where users can collect football cards, build teams, and engage in challenges based on actual match performances. Players can earn card packs through gameplay or purchase premium currency to enhance their collections. Julia forecasts that Arcade could generate between €15 million and €20 million in net revenue during 2026.
Challenges and Legal Issues
This funding comes five years after Sorare raised $680 million at a valuation of $4.3 billion. Since then, the company has struggled with high licensing costs and lower-than-expected customer spending, leading to a reduction of over €500 million in annual licensing commitments through renegotiations and contract withdrawals. Additionally, Sorare has consolidated its operations by closing its New York office and focusing on its Paris base.
The launch of Arcade aims to attract a broader audience by allowing free engagement, but its success will depend on retaining user interest and converting that into revenue. This pivot follows the company's transition of games and NFTs to the Solana blockchain in October 2025.
On the legal front, Sorare is currently facing prosecution from the UK's Gambling Commission for allegedly providing unlicensed gaming services, to which it has pleaded not guilty. A trial date has been set for June 7, 2027. Furthermore, a £10 million payment made to the Premier League is under scrutiny in a National Crime Agency investigation. Despite these challenges, Julia remains focused on steering the company towards profitability.