Databricks, a startup company backed by such giants as Google, Microsoft, and Amazon, is worth around $28B, and its IPO is one of the most anticipated in the tech market this year. Founded in 2013 by those who also created Apache Spark analytical framework, Databricks focuses on developing software used to quickly process large amounts of data. Its major competition includes Snowflake, a cloud service that launched an IPO in 2020 and skyrocketed by 171% during its lockup.
Databricks Pre-IPO Financial Performance
The first financing round took place back in 2013, and the company raised $14M.
Microsoft, one of Databricks' core partners, is already using Databricks software in Microsoft Azure, a popular cloud platform.
In August 2021, another round of financing was led by Counterpoint Global. The infusion amounted to $1.6 billion and Databricks reached a value of $38 billion. Investments of Amazon Web Services, Salesforce Ventures, and others. Major investors include Amazon Web Services and Salesforce Ventures.
Currently, Databricks, backed by the world's four largest cloud companies, is one of the most valued private companies in the tech segment.
The start-up's post-IPO valuation could exceed $40bn.
Databricks IPO Date
The exact IPO date is still unknown, although the company is working hard to get ready for it. It is assumed the IPO is going to take place in the first six months of 2021. Direct listing is also possible: the decision is yet to take, Databricks' CEO says.
Databricks IPO Outlook and Target Market
Databricks has over 5,000 loyal customers, which include both small companies and such giants as Comcast and T-Mobile. Its annual income already exceeded $425M, and the company is going to spend this money on global expansion. Such a task will require a large investment, as the differences in local legislation need overcoming, the products need localization, and new staff, hiring; however, if the plan is successful, the profit may also increase drastically.
According to a research by BusinessWire, the global Big Data market is growing rapidly and is expected to increase by $142.50B during 2020-2024.
How to invest in IPO Databricks?
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