Databricks raised a sturdy amount of $1 billion in Series G funding round, in February. The company is data-and-AI-based and deals with corporate information stored in the public cloud. databricks 1b 28bjohnsonventurebeat. It has now been valuated at a whopping $28 billion after the investment. Databricks has recorded ARR of $425 million.
The funding round was led by Franklin Templeton and participation of new investors like Fidelity and Whale Rock. The major part of the investment raised by Databricks was from major cloud vendors including AWS, Salesforce Ventures, and Alphabet via its CapitalG vehicle. Microsoft is one of the previous investors and took part in the current round too.
The company has made its mark by introducing a series of four open source products with Delta Lake being the prominent one. Ali Ghodsi, CEO of Databricks claimed that the company is the fastest-growing cloud-based software company ever. Offering these open-source products as a software service is the prime source of income for the organization. The company has done such a good job in this path that it exceeded the targeted raise of $200 million. More and more parties are willing to invest funds into Databricks. As a result of which the company had to turn its capital away as they decided to cap the round at $1 billion.
As per Ghodsi, the extra raise of $800 million will be used for M&A opportunities with an eye on talent. They are planning to spend more on establishing a Lakehouse concept, aiming at international expansion, as well as expanding its engineering team. Ghodsi even mentioned that AI market is a long journey that he hopes to be on for decades. He even expects the stock market to go up & down. However, as the company keeping growing on the same path, the valuation will take care of itself.