UiPath and Databricks Reach $63 Billion Valuation Ahead of Direct Listings
UiPath and Databricks secure massive late-stage funding rounds that push their combined valuation past $60 billion. Both enterprise software giants plan to bypass traditional IPOs in favor of direct listings this year.
UiPath and Databricks officially become two of the most valuable privately held tech companies in the U.S. after securing massive new funding rounds. UiPath raises $750 million at a $35 billion valuation for its office automation software, while Databricks brings in $1 billion at a $28 billion valuation for its cloud data processing platform. These lucrative cash injections give both companies the financial padding they need to bypass traditional initial public offerings.
Instead of standard IPOs, both highly anticipated tech unicorns lean toward direct listings for their 2021 public market debuts. UiPath already submits a draft registration with the SEC and expects to take this non-traditional route, according to people familiar with the confidential plans. Databricks CEO Ali Ghodsi states that all options remain on the table, but he currently enjoys the benefits of private capital while keeping a public listing likely for this year.
A direct listing allows existing shareholders and employees to sell shares directly to new investors without issuing new stock or relying on underwriters. This alternative path gains significant traction in the tech sector, following precedents set by Spotify, Slack, Palantir, and Asana, with Coinbase and Roblox also adopting the strategy. By choosing this method, UiPath and Databricks enter the public market in the shadow of Snowflake, which previously held the largest software IPO in history.