Databricks, a unified data analytics front liner built on a variety of open source tools, today announced a raise of $400 Million to continue boosting its growth and user base. The company has now claimed to be the one of the fastest growing cloud enterprise in the world. With today’s Series F Funding round, the company now boasts of a $6.2 Billion valuation. Overall funding including the $400 Million from today has now reached $900 Million.
The Series F round, led by Andreessen Horowitz’s Late Stage Venture Fund was also attended by investors like BlackRock, Inc., T. Rowe Price Associates, Inc. and Tiger Global Management. The company has seen a rapid growth is the past few years where its annual recurring revenue (ARR) has grown 2.5 times over past few years.
CEO Ali Ghodsi said:
We are one of the fastest growing cloud enterprise software companies on record, which means we have a lot of access to capital as this fundraiser shows. The revenue is growing gangbusters, and the brand is also really well known. So an IPO is not something that we’re optimizing for, but it’s something that’s definitely going to happen down the line in the not-too-distant future.
From generating no revenue four years ago to reaching a $200 million run rate in the third quarter of 2019, the company has seen rapid growth. The company provides four open source products for users. The tools include Delta Lake, MLflow, Koalas and Spark, all of which can be downloaded for free.
Though these tools are free to download, they are rather tricky to use and manage. Databricks provides each of these tools as a service to firms, which is its only source of revenue. This way, they manage all the complexities associated with the tools at the cost of a small subscription fee.
Last February, they raised $200 Million giving it a $2.75 billion valuation. The growth prospects investors could see in the company is quite evident with todays $6.2 Billion evaluation.