Databricks valued at $62 billion in new funding round

PANews reported on December 18 that according to Bloomberg, Databricks, which focuses on big data analysis and artificial intelligence solutions, announced a new round of financing of US$10 billion, bringing the company’s valuation to US$62 billion. This round of financing was led by Thrive Capital, with participation from Andreessen Horowitz and DST Global. Other backers of the new round include Singapore sovereign wealth fund GIC Pte Ltd., Insight Partners and WCM Investment Management. Lightspeed Venture Partners also participated in the deal, according to people familiar with the matter. The company invested $200 million in the round, said a person familiar with the matter who asked not to be named. Databricks plans to use the funds to develop new AI products, conduct mergers and acquisitions, and expand operations in international markets. In addition, it will be used to repurchase shares held by current and former employees.

Databricks expects annualized revenue to exceed US$3 billion in fiscal 2025, with sales increasing by more than 60% year-on-year in this quarter. Its product Databricks SQL, which competes with Snowflake, has annual revenue of US$600 million, with an annual growth rate of over 150%. Currently, there are more than 500 customers with annual spending exceeding US$1 million. This round of financing enhances the liquidity of employee shares and provides flexibility for a future IPO, which CEO Ali Ghodsi said could be as early as next year.