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Kyle Wiggers
Databricks, the data analytics platform, has raised an impressive $10 billion in a funding round that values the company at a staggering $62 billion (up from $43 billion). This mammoth ‘Series J’ investment is one of the largest venture rounds in history and comes ahead of the company’s highly anticipated IPO.
Who’s Behind the Investment?
The funding round includes backing from prominent investors such as Thrive Capital, Andreessen Horowitz, DST Global, GIC, and Iconiq Growth. This significant influx of capital will be used to drive future mergers and acquisitions, stock payouts to employees, and expansion abroad.
According to a statement obtained by CNBC, the funds raised in this round will also enable Databricks to accelerate its growth plans. The company’s leadership team is optimistic about the prospects of using the fresh capital to fuel further innovation and expansion.
Databricks’ Growth Story
Founded in 2013 by seven doctorate candidates from UC Berkeley, Databricks has come a long way since its inception. The company offers AI, big data analytics, and cloud tooling to enable businesses to build data- and AI-powered applications.
Databricks’ revenue growth has been impressive, with the company reporting more than 60% year-over-year growth in the October quarter. This momentum is expected to continue, with the company anticipating positive free cash flow for the first time in the quarter that ends on January 31.
Key Highlights from Databricks’ Growth Story
- Revenue Run Rate: $3 billion revenue run rate in the quarter ending January 31
- Year-Over-Year Growth: More than 60% year-over-year growth in the October quarter
- Free Cash Flow: Anticipating positive free cash flow for the first time in the quarter ending January 31
What’s Next for Databricks?
With this significant funding round, Databricks is set to further accelerate its growth plans. The company will use the funds raised to drive future mergers and acquisitions, stock payouts to employees, and expansion abroad.
As Databricks gears up for its highly anticipated IPO, the company’s leadership team remains optimistic about the prospects of using the fresh capital to fuel further innovation and expansion.
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