Tequila Works was founded in Madrid in 2009 by Raúl Rubio Munárriz and Luz Sancho Rodríguez.

[3][4] The company also collaborated with GameTrust Games on a virtual reality project named The Invisible Hours, in which players will solve a murder mystery.

[7] In February 2019, Sony Pictures Virtual Reality announced a VR game by Tequila Works titled Groundhog Day: Like Father Like Son, which is set 26 years after Groundhog Day starring Bill Murray, planned to release later in 2019 for PSVR, Oculus Rift and HTC Vive.

[1] In March 2022, Tequila Works announced that it has received an investment from Tencent which will be used to grow the studio and develop more original IP.

[9] In November 2024, it was announced that Tequila Works had filed for insolvency due to "prolonged market conditions".