On Tuesday, Databricks, a leading software company, secured a substantial $10 billion in funding, bringing its valuation to an impressive $62 billion. This marks a significant increase from the previous valuation of $43 billion in 2023. The new funds will allow Databricks to offer liquidity options to its current and former employees, pursue acquisitions and facilitate its expansion into international markets.
The company, which competes with Snowflake, now valued at about $57 billion as of Monday’s market close, specializes in data analysis, data cleansing and running artificial intelligence models for its clients. Databricks’ software is compatible with major cloud services such as those provided by Amazon, Google, and Microsoft, which are also considered competitors in the industry.
Databricks announced that, for the first time, it is on track to achieve positive free cash flow with an expected revenue growth rate of $3 billion for the quarter ending January 31. The company also reported revenue growth of more than 60% year over year for the October quarter.
The recent funding round attracted contributions from a list of investors, including Thrive Capital, Andreessen Horowitz, DST Global, GIC, Iconiq Growth, Insight Partners, MGX, Sands Capital, WCM Investment Management and Wellington Management. To date, Databricks has raised a total of $8.6 billion.
While tech investors have long awaited an initial public offering (IPO) from Databricks, the company has yet to release any new details regarding the timing of its highly anticipated IPO. However, there is speculation that the event could occur in the coming months.
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