Databricks IPO: When is this Data management firm getting listed?

Highlights

  • Data management firm Databricks is reportedly planning an IPO, and a public listing may occur by this year.
  • The company raised US$ 1.6 billion in Series H last month, increasing its valuation to US$ 38 billion, making it one of the most highly valued private companies in the world.

US-based and artificial intelligence (AI) driven enterprise software company Databricks is reportedly planning an initial public offering (IPO).

While the company has not confirmed its IPO plans as yet, it is expected to take place by 2021.

Databricks’ IPO plans

The data management company recently raised a significant amount of capital in its latest funding round, raising speculations about whether it would delay a potential Databricks IPO.

Responding to this, the company’s co-founder and CEO, Ali Ghodsi, stated that the latest capital infusion would not push out the possibility of an IPO. Mr. Ghodsi did, however state that Databricks would most likely not take the SPAC route for a public listing.

SPACs have risen in popularity recently, with several tech firms opting to list via a reverse merger with a blank cheque company.

Recent fundraising

The company recently raised US$ 1.6 million in a Series H round of funding in August, giving it a post money valuation of US$ 38 billion. The company’s latest valuation propelled it into the league of six highest-valued private companies globally. 

Databricks’ IPO plans and recent fundraise

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The series H round was led by Morgan Stanley’s fundamental equity arm, Counterpoint Global. Some new investors in this round included UK based investment management company Baillie Gifford, capital markets company ClearBridge Investments and others.

The latest fundraise values the company US$ 10 billion more than its earlier capital raising round.

The company, which was founded in 2013, had previously raised US$ 1 billion in its Series G round of fundraising earlier this year in February.

Some of Databricks’ existing major investors include venture capital firm Andreessen Horowitz, investment firm Tiger Global Management, asset management firm Fidelity and others.

Databricks has raised a cumulative total of US$ 3.5 billion in its eight funding rounds since its inception.

The company reported an annual recurring revenue (ARR) of US$ 600 million, up from US$ 425 million in 2020.

Related Article: Polestar IPO: What to expect from the listing of this EV maker?

Bottom Line

Databricks’ surge in valuation comes as investors are betting the company to be able to sustain its current level of growth. The company’s most recent ARR rose by 41.17 per cent year on year from 2020.

The data management company is aiming to make its Databricks Lakehouse Platform the future of data architecture.

While the AI-driven data processing industry is a huge market, it is also very competitive. Thus, in order for Databricks to surpass its competitors, the company should focus on customer acquisition and retention strategies.

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