San Francisco-based Databricks, a Data and AI company, revealed that it has secured more than $500 million (roughly €469 million) in a Series I funding round, achieving a valuation of approximately $42 billion (around €40 billion).
The company has also set the share price at $73.50.
The funding round was spearheaded by T. Rowe Price Associates, Inc., and featured participation from existing investors including Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, Octahedron Capital, and Tiger Global.
In addition to these, the funding round welcomed new investors such as Capital One Ventures, Ghisallo Capital Management, Ontario Teachers’ Pension Plan, and NVIDIA.
Ali Ghodsi, Co-Founder and CEO of Databricks, commented, “The commitment from long-term focused strategic and financial partners reflects Databricks’ continued momentum, the rapid customer adoption of the Databricks Lakehouse, and the success customers are seeing from moving to a unified data and AI platform.”
He added, “Databricks and NVIDIA are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers.”
This funding announcement coincides with Databricks’ impressive performance, highlighted by its Q2 results for the period ending July 31, 2023. With a revenue run rate exceeding $1.5 billion, the company achieved remarkable year-over-year growth exceeding 50 percent, making it the most prosperous period in Databricks’ history in terms of incremental revenue growth.
Currently, the company boasts a global customer base of over 10,000 clients, including more than 300 customers generating an annual revenue run rate exceeding $1 million. The US Company also achieved a new record with a Non-GAAP subscription gross margin of 85 percent. Furthermore, the company expanded its portfolio through the acquisition of MosaicML, a renowned generative AI platform.
Databricks: Bridging Data, Analytics, and AI
Founded by the original creators of Delta Lake, Apache Spark, and MLflow, Databricks is on a mission to assist data teams in addressing the world’s most challenging problems.
The Databricks Lakehouse consolidates data, analytics, and AI within a single platform, enabling customers to govern, manage, and extract insights from enterprise data while expediting the development of their generative AI solutions.
According to the company’s assertions, more than 10,000 organizations worldwide, including Comcast, Condé Nast, and over 50 percent of the Fortune 500, rely on the Databricks Lakehouse Platform to streamline their data, analytics, and AI operations.
About the Investors
“Data and AI have rapidly become central to many business strategies. Databricks has not only pioneered the Lakehouse category with a world-class team and product, but it is also leading in Generative AI for the enterprise. We’re delighted to expand our investment at such a crucial juncture for the company, its customers, and the data and AI industry,” stated Alan Tu, Lead Private Equity Analyst at T. Rowe Price Associates, Inc.
“Teachers’ Venture Growth is enthusiastic about investing in the San Francisco company and sees substantial growth potential for the business as enterprises increasingly incorporate AI into their operations. As investors committed to long-term value creation, we eagerly anticipate collaborating with Ali and Databricks’ strong management team in their next phase of growth,” expressed Olivia Steedman, Executive Managing Director of Teachers’ Venture Growth at Ontario Teachers.