American software company Databricks could go public this year in a blockbuster IPO. Databricks will join other well-known San Francisco-based tech companies such as Kraken and Reddit, in potentially one of the biggest IPOs in 2023.
The coronavirus pandemic hit many San Francisco-based startups, that were planning to go public last year but were instead caught up in the economic downturn. As things are gradually returning to normal this year, Databricks could be looking for a valuation in excess of $40 billion. Following its latest fundraising of $1.6 billion in August 2021, the company is worth around $38 billion.
Databricks is a cloud-based platform that unifies and simplifies data systems, for better organization and collaboration within companies. Its software is used by both large enterprises and smaller businesses including several well-known companies such as Apple, Disney, HSBC, Shell, Condé Nast, and Atlassian.
Databricks was founded in 2013 by seven co-founders and has origins both in academia and the open-source community. In 2015, Databricks achieved the popularity needed to become a highly valued company. In 2021 the company’s CEO Ali Ghodsi announced that the company had achieved a $1 billion funding round.
Databricks has worldwide locations in four continents and twelve countries, including the US, Asia, Europe, and Australia, and over 5,000 employees globally.
|Headquarters||San Francisco, California, United States|
|Number of employees||5,000|
|Revenue 2021||$600 million|
|Potential Valuation||$40 billion|
Sources: Yahoo, Fortune.com
Databricks is expected to be one of the most high-profile IPOs in 2023. The valuation could potentially exceed $40 billion.
Ali Ghodsi views an IPO as just one step towards making Databricks akin to Salesforce as well as a way to attract long-term investors. Talking about the plans to go public, Ali Ghodsi said last year that if the company’s revenue keeps growing at its current pace, he believes that “the stock price will take care of itself when the time comes.”
The IPO date has not been confirmed yet and more information about this IPO will become available closer to the IPO date.
An Initial Public Offering (IPO) is an investor’s first chance to gain exposure to an organisation. An IPO is an important milestone for a company looking to raise capital and an opportunity for investors to get involved in a hopefully growing business.
With Axi you can get exposure to Databricks IPO as soon as it’s listed on a specific exchange and prices from the exchange become available to our liquidity providers.
Sources: CNBC, Wall Street Journal, Bloomberg
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