Tencent-backed gaming startup PlaysOut eyes $15M funding at $150 valuation to power Web3 mini-games

PlaysOut, a Tencent-backed gaming startup, is in early talks to raise up to $15 million in fresh equity financing in a deal that would push its valuation past $150 million, Bloomberg reported on Friday. The round comes less than six months after its $7 million seed raise in March and signals growing investor appetite for startups bridging Web2 familiarity with Web3 innovation.

Founded by Jassem Osseiran and Jimmie Jeremejev, PlaysOut started as a multi-engine compatible mini-game platform. The company has staked its future on embedding blockchain elements inside mini-games that can run seamlessly inside super apps like Telegram, Discord, and YouTube. With its SDK, developers can layer in token economies, NFTs, and other Web3 features without alienating mainstream players who are used to the simplicity of mobile mini-games.

“Gaming technology startup PlaysOut is considering raising as much as $15 million in new equity financing at a valuation topping $150 million,” Bloomberg reported, citing people familiar with the matter. 

Tencent Cloud has been a key ally in this push. Through their partnership, PlaysOut has strengthened its mini-program capabilities and gained access to Tencent’s vast distribution network. That access has given the startup an advantage as it builds out infrastructure for mini-games tailored for social platforms.

The funding discussions, according to sources familiar with the matter, involve a mix of high-profile investors ranging from Middle Eastern sovereign wealth funds to top-tier venture capital firms. Proceeds would be used to accelerate commercialization and expand its reach into new markets.

Back in March, PlaysOut’s $7 million seed round—led by OKX Ventures, KBW Ventures, and Kenetic Capital—valued the company at $70 million. That capital helped launch its blockchain-integrated mini-game SDK in May, a product aimed at changing how super apps engage and monetize their users.

PlaysOut’s rise reflects a bigger shift in gaming: startups are trying to fold Web3 features into accessible formats that don’t scare off everyday gamers. Mini-games, with their lightweight design and social virality, are becoming a proving ground for that strategy. If this new round closes, PlaysOut would have doubled its valuation in under half a year, underscoring the bet investors are placing on mini-games as a gateway for broader Web3 adoption.