Databricks Secures $1B at $28B Valuation Amid Explosive Growth
Databricks raises a massive $1 billion Series G round, pushing its private valuation to $28 billion as it surpasses $425 million in annual recurring revenue.
Databricks raises a massive $1 billion Series G round at a $28 billion post-money valuation, surpassing the current public market value of its rival Snowflake. Franklin Templeton leads the investment, which features a sprawling list of participants including new investors like Fidelity and Whale Rock, major cloud providers like AWS and Alphabet, and previous backers such as a16z, Tiger Global, and Microsoft.
The data-and-AI company achieves this staggering private valuation after hitting $425 million in annual recurring revenue. Databricks generates this income by offering its four open-source products, led by the core Delta Lake data lake product, as premium software services to corporate clients operating in the public cloud.
CEO Ali Ghodsi reveals that the company initially plans to raise just $200 million, but demand from eager investors forces the round to balloon to $1 billion. Databricks even turns away additional capital after capping the round, and it plans to use the extra $800 million to fund mergers and acquisitions, build out its Lakehouse concept, and drive international expansion.