Slack Technologies Inc., operates Slack, a platform that enables team communications, has raised a $250 million funding round led by SoftBank Group Corp.’s Vision Fund. This fund will give the company more ammunition for expansion in an increasingly competitive market for workplace messaging services.
The financing round values the startup at $5.1 billion, up from $3.8 billion the last time. The round also saw participation from Accel and other investors. It was reported that more than half of the total new funding raised by the company came from SoftBank.
Founded in 2009 and is based in San Francisco, California, Slack Technologies, Inc. which operates Slack, a platform that enables team communications in one place. Its platform provides real-time messaging, archiving, and searching services for various teams.
On the development, Stewart Butterfield, Slack’s Chief Executive Officer, said:
We have a lot of large customers, and the bigger ones are a lot more conservative. As they move tens of thousands of people over to Slack they want to make sure we’re going to be around. But it especially helps with potential recruits. We still have to compete with Facebook and Google and they give substantial offers there.
The company this month also announced an expansion of its service to work in German, French, Spanish and Japanese as it competes with Microsoft Corp.’s Teams and Atlassian Corp.’s HipChat service for corporate customers.
The company claims to have more than 9 million weekly active users and 6 million daily active users. The company has more than 2 million people paying to use the service on more than 50,000 paid teams and revenue from subscriptions has reached $200 million.
The company says to utilize the money for operational flexibility, not for a particular use and added that it still has much of the $591 million it already raised.
On the investment, Butterfield said:
The additional capital will also help give large clients, as well as existing and future employees, confidence that Slack is here to stay.
SoftBank’s Vision Fund raised almost $100 billion this year and is covering the venture capital market and tech sector with the money. It was reported that it invested $4.4 billion in shared-office company WeWork Cos. in August and is mulling an investment in Uber Technologies Inc. of up to $12 billion with three other investors.
Last month, the Vision Fund was said to invest about $2.5 billion in Flipkart Group, the biggest Indian e-commerce operator. That marked the largest venture deal in India, people familiar with the matter said at the time.